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Google is responsible for 64% of all searches done on the Internet. As traffic grows on the Internet they continue to benefit. They are in the middle of the shift in the spending in media and are getting the lion’s share of the revenue for advertizing. Its revenue is accelerating and their margins are improving. They own YouTube. He likes defense companies because you never really know what ELSE is in there that can come out and generate revenue later. Google is the greatest brain child. It has pulled back 10% but is firmly in an uptrend.

It behaved differently than the other industrials during the last year’s correction in the sector. They are going to wind up with additional free capitals to buy back shares and increase dividends with. The sector is now recovering. 7-8% of revenues are from the energy space.

The US consumer is slowly improving and low energy prices are great for the consumer. This is the best brand in the paint industry. As the economy improves they will benefit. Their biggest input is petroleum products. 80% of the revenue comes from the US.

It has been underperforming for several months. It is unclear if these things will lead coming out of this correction. He would prefer a company that would benefit more from a strong US economy.

During a correction the market stress tests all the securities. When the tide goes out you can see where the strength is and where the weakness is. One of the strong sectors is semiconductor. QCOM-O has been declining for well over a year, underperforming the market. He prefers the ones that hold up better than the sector during a correction.

This is a company that is guilty by association. It has a tremendous balance sheet, is well managed and the assets are excellent. With any kind of rally in energy this company will do very well. You will do fine in this market right now.

He does not buy companies that are dependent on something good happening in the future. He thinks this is a lottery ticket. They are capital constrained in the ability to go on with their jet program.

Buying yield stocks is a great strategy. Utilities are behaving really well. It is in the utility-like group and the dividend is really attractive. He thinks the yield is sustainable.

Energy has become mass manufacturing. Whenever a new equity deal comes to the table, investors want to buy it. He worries about volumes of production and therefore pipeline utilization. This is the problem with infrastructure companies. He would focus on integrated oil companies.

The chemical sector over the last few years has been the best place in basic materials. The low price of natural gas has helped. When the markets corrected, all chemical stocks sold off, found lows and tested them twice. This one is behaving quite well. The market is voting that this is one of the places you could see a good recovery.

Canadian Banks. He prefers US banks to Canadian. However, in the near term he is seeing improvement in Canada. You could get a nice total return. Down the road we may have some poorly performing loans from the energy price. He would prefer TD-T of the Canadian ones, but would prefer to focus more on the US banks.

The agriculture space has been difficult over the last 18 months. Seasonally you would look at these stocks, but he does not see a sustainable bounce in the near term so would avoid the sector.

(Top Pick Mar 10/15, Down 36.01%) He got stopped out last March. They missed a number. He is not buying biotech right now.

(Top Pick Mar 10/15, Down 30.37%) He came out of it. Semiconductors can be quite volatile.

(Top Pick Mar 10/15, Up 26.04%) It is one of his biggest positions. He really likes the consumer sector. He sees early strength coming off the bottom. It is very recession resistant. They have done such a good job executing.