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The US financials have lagged the market over the last few years. They are now trading at a massive discount. This is a long term theme that he thinks is very interesting. If Trump reduces regulation, then US banks should get up to the level of the Canadian banks. He thinks the Fed is way behind in rising interest rates.

(Top Pick Dec 9/16, Down 0.3%) He was expecting them to move up, but he still likes it.

(Top Pick Dec 9/16, Down 8.8%) He bought more today. He bought them to benefit from the increase in commodity prices. He still likes it. It still pays a dividend. They are still reducing costs. 2.8% dividend.

It is a wonderful company, but sometimes that does not make a company a great investment. It is in a great area and will have a wonderful future. Typically the fourth quarter is wonderful in tech stocks. The sell side then wants to sit back and watch it for a period of time.

He expects to hear about an increase in US military spending in tomorrow night’s speech. They will benefit from the border tax.

If you have to own a retailer this would be one to look at. There is a small group of stocks that are surviving in retail. The whole industry is going through a change. But he thinks there are other areas in the market that look better. It pays a 1% dividend.

It is one of the top private equity companies in the world. They are an L.P. so get special tax treatment and you would have to file with the IRS even if you are a Canadian. You are better to own it through a fund so they do all the work with the IRS.

Wait a couple of days and see if you can get a better entry point. It was just rated a strong buy by an investment firm. He does not know what this one will look like after the trade negotiations are done.

Money is going to come back into these drug stocks, but we have to see what happens with Obamacare.

They have exposure into India. It is an expensive stock with a low dividend (~2%). He sold it earlier this year. He would not short it.

There are other places he would rather be (e.g. Technology).

With the changing demographics and tastes, people are more eating at home. The sector is ripe for a consolidation, but he does not buy consolidations.

This is the way to play commodities – through volume and not price. He loves industries that are coming out of bankruptcies. He does not think commodity producers are going to compete on price. (Analysts’ target: $7.60).

US financials have a way to go, two or three years. It is only going to get better. It pays a dividend. He is confident the housing market will stay robust. (Analysts’ target: $26.00).

European & Latin American bank. The idea is that if it works in the US, then it will be copied in Europe, where banks are dirt cheap. This theme has longer to go than the US financial theme. (Analysts’ target: $4.27).