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Markets. We have this divergence because we have the liberal budget coming out. Canada is out of cash. The US is going to cut taxes and make it more competitive, making business less efficient here. He thinks what is doable through congress and what Trump would like to do are two very different things. March 15^th we next hear from the Fed, March 10^th we get another employment number. If we get a good employment number it is 50/50 we get a rate hike. We are due for some volatility soon.

ETFs for an RESP at the start of University. As you go into the years where you start to use the funds, you need to make sure the money you will take out each June is not subject to volatility. Take next June’s withdrawal and put it into a money market ETF. The rest can be a short term corporate bond ETF. At some point before the end of the 4 years of school, we will probably have a recession.

This is expensive now. He has been selling into the strength since December. If it gets back to those levels he would buy back in.

VIX Products. There are a suite of single, inverse and leveraged ETFs with Horizon. You are exposed to US dollars even though you buy them in Canadian dollars. They are not good for long term trades, however. HUV-T may be one to look at.

Utilities, pipelines and Telco’s. 80/20 Canadian to US. It fell on anticipation of interest rate increases and oil dropping early in 2016. You have to be careful because rising interest rates and falling oil prices are both negative for it.

If you want to be in the sector, use ZRE-T because sometimes a stock underperforms and sometimes it outperforms. Recently the sector has been improving while REI.UN-T has not. REITs are not cheap compared to other places to get a dividend.

There is no real negative from the covered call strategy in a dropping market unless the stock goes down by large up & down movements. However, it enhances your yield while you are waiting out the downturn.

He does not know what to do here. It is cheap from a long term perspective, but there has been a demonstration of poor execution for years. You could take a shot at it at $1.50, but you should not be in it right now.

Educational Segment. Diverging tax policy in the US and Canada and how to take advantage of it. Trump is addressing a joint session of congress tomorrow night. Trump is going to talk about tax, including border tax. They may not have agreement about tax reform until Q4 this year or even early 2018. They want the tax reforms to be revenue neutral. He is far more bullish in his outlook for the US than Canada. The Canadian dollar could get weaker. PSU-T is a high interest savings account, but you would also make money on the drop of the CAD$ relative to the US$. For more aggressive types you could play it with small caps in the US and an inverse position in Canada. There is volatility ahead with ambitious estimates for earnings growth possibly not happening.

You have the Amazon effect. They are owned by a hedge fund. He would not touch it. There is overcapacity in the retail space.

It has a 3.4% yield. He likes it. On a seasonal basis technology may take a breather here. As we connect more and more devices up to the cloud this one should benefit. Trump may focus on building out the digital infrastructure in the states. He thinks they will be well placed going forward as we move from the world of analogue to digital. They are executing so you won’t lose any sleep over it. (Analysts’ target: $35.00).

They had a messy quarter in terms of write downs. There may be more coming so he would wait a quarter or two to see them clean up their book a little bit.

It is an interesting space, but expensive. Wait until we get clarity on what is happening with Obamacare. Investors may migrate out of the devices group.

He is looking for what the tax policies are coming out of the Trump administration. If he offers accelerated depreciation then this one would benefit.

It does not pay a dividend because he believes he can better reinvest it in the company (buying more companies). You cannot disagree with his track record. It may be a stable position for you. There are other areas in the financial industry that look more attractive at this time, however.