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Economy. This has been a 35-year bull market and there are significant changes coming. A chart showing 30 year US government bond yields from 1981/1982 on showed a long decline in rates. We’ve just had 2 Fed hike rates, which means a lot in housing, because mortgage rates have gone down each time. For the last 4-5 years, a lot of people have been sitting with 3% mortgages. When they have to renew, they will probably be looking at higher rates. People should start to prepare for this. In the last 10 years, pensioners have taken it on the chin because they’ve been trying to get safety with yield to prevent erosion of capital. It hasn’t worked as yields have continued to trickle lower and lower. He wants to have yield, but also needs to have growth. The government would like to have more inflation and have been jamming rates down hoping to get it. On the other side, all this new technology, such as Uber and Amazon, is actually deflationary because costs are going down. The demand for commodities is not what it used to be. He is also using a “Progressive Value” approach, like a “growth of the reasonable price” system, and is looking for companies that are well valued, but with good growth prospects.

About 25% in Brazil. Thinks European banks are in a position where the American banks were a few months ago. US banks have followed through and have been wonderful in the last couple of months, and the good European banks are ready to follow through.

Canadian Banks travel together. As a herd, there are leaders and there are laggards, and this one has been a laggard over the last few years. They all look pretty good, but not as cheap as they were a couple of months ago. This bank continues to increase its yield.

He doesn’t own any infrastructure stocks, but this one is good and has a good track record. Infrastructure stocks have been consistent performers. They have been yield stocks, but have been able to grow through it, and you want that combination. Infrastructure stocks do look better with Trump saying he is going to do a lot of stuff. Dividend yield of 6.2%.

He doesn’t own any infrastructure stocks right now, but this one is a very good one. We are going to get some fiscal policy follow through from some of the governments, which has been a way overdue. Expects there will be some spending starting to take place in the US.

All the pharmaceuticals have had a pretty rough go. This is one of the stocks that has the ability to turn and run. Their group is out of favour. There hasn’t been any money flowing into the sector for a while, and they are fairly cheap.

This has really been spanked in the last 4-5 months, taking it down from $13-$14 to around $10, and it is now coming back. When watching some of the commodities, the recovery in some of them fits into the whole infrastructure buildout and fiscal policies. There is always demand for uranium, because all global reactors need to be refilled, and this company is the low cost one. At this price, you won’t hurt yourself, you just have to wait for materials to come back in again.

Stock or bullion?The whole precious metals sector has been out of favour. If going into this, he would be more inclined to take the stock over bullion because of the leverage. This company has multiple mines.

(A Top Pick Nov 6/15. Up 60.93%.) They use high-powered water to excavate. It has had a great run, and he has trimmed at around $25. He still likes this. If crude prices continue to edge higher, it will be even more beneficial.

(A Top Pick Nov 6/15. Up 10.89%.) He still likes this. The growth is there and it is going to come. You get a good yield while you wait. It will give you a 10% return.

(A Top Pick Nov 6/15. Up 29.99%.) He still really likes this and would buy more of it. This continues to try and deliver, and has the potential to do very well.

This is not mining, they just take a fee for services from the mines. Currently he is not into precious metals. The money flows are out of precious metals.

His only concern is if there is enough growth and dividend to chin the bar. The sector has been sideways. If rates start to rise, some of these companies have a lot of debt, which means the cost of carry when it rolls over is going to be higher.

A great company, but is in a sector that has a lot of difficulties passing through fee increases, and he wonders if it can grow out of it. He owns nothing in the telecom area.

He is positive on this. As rates rise, this benefits some of the financials, but it really benefits the life companies.