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The auto parts space is in a precarious position with protectionism and so on. He does not like to be in an industry where stocks can move around on a Tweet. You have rising gasoline prices and rising interest rates. It is a double whammy.

The outlook is dependent on the outlook for Canadian housing, which the government is trying to put the brakes on. He used to be short, but is not right now. You are better off owning a bank.

It has a strong correlation to interest rates and equity market returns. In the near term you could see headwinds from toppy equity markets. It is not the sort of thing he would own.

REITs. He does not own any. He owns Dream Unlimited. REITs in general are just more interest rate sensitive than he likes. If you believe rates have bottomed and will not move much higher you could get some good returns out of it. DRG.UN-T is one he would like.

He is not short this one anymore. He thinks it is fully priced, however. They have quite a bit of debt and are building an asset in Panama. There is political risk in Zambia.

*Short*, stay short. The industry is in secular decline. (Analysts’ Target: $28.83).

*Long* A pairs trade with CNQ-T. Over the next 6 months you could see oil prices drift up. Their balance sheet is possibly underestimated because their debt is all termed out. They are 80% down from their all time high. (Analysts’ Target: $7.97).

*Short* A pairs trade with BTE-T. Any good news you could possibly get is already priced in. (Analysts’ Target: $49.64).

It is an event driven situation for him. They put themselves up for sale. He thinks they want to get a deal done. The market is under estimating what the pricing should be. (Analysts’ Target: $25.60).