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A core holding for him. When you get a theme that gets into gear for good reason, long-term secular changes, they can go a long way. This one is right at the heart of autonomous driving and artificial intelligence machine learning, and looks as though it is the leader in the semiconductor group. Semiconductors have had a great move over the last 2 years. As long as this market continues to behave well, and he thinks it is quite good right now, this company should continue to perform well.

Infrastructure companies are the least sensitive group to the price of energy. While energy has been weakening over the past few weeks, energy infrastructure names have been doing quite well. Not the strongest name in the Canadian market. It has a 7% dividend yield, and he wouldn’t be betting on that. There are better places to be.

There are 5 key groups in this market, and healthcare is right in the centre and at the top. Within healthcare, he really likes devices and equipment. He also really likes healthcare services as well as biotech. This company fits right in the middle of all of that. A great company to hold in this market. You’re going to get a strong growing dividend yield, and they have good strong earnings, and there is a tailwind from the sector.

American Tower (AMT-N), Crown Castle International (CCI-N) or SBA Communications (SBAC-Q)? US REITs that own cell towers. You want to own these because they have multiple tenants. The average tower has 3 or 4 tenants. They can put more and more gear on them, so there is lots of room to grow revenues. The US is going through a boom on bandwidth, certainly wireless spectrum. Of the 3, he prefers this, the most international of the group. About 60% of revenue comes from the US and the rest is international. Generates a lot of free cash flow, and is highly predictable because of 5 year contracts. As we move to 5G, there is going to be a whole bunch more gear getting loaded on these towers, allowing them to charge more rent. It doesn’t pay a big dividend, but it has grown 34% a year over the last 5 years.

American Tower (AMT-N), Crown Castle International (CCI-N) or SBA Communications (SBAC-Q)? US REITs with cell towers in the US. You want to own these because they have multiple tenants. The average tower has 3 or 4 tenants. They can put more and more gear on them, so there is lots of room to grow revenues. The US is going through a boom on bandwidth, certainly wireless spectrum. Of the 3, he prefers American Tower, the most international of the group.

American Tower (AMT-N), Crown Castle International (CCI-N) or SBA Communications (SBAC-Q)? US REITs with cell towers in the US. You want to own these because they have multiple tenants. The average tower has 3 or 4 tenants. They can put more and more gear on them, so there is lots of room to grow revenues. The US is going through a boom on bandwidth, certainly wireless spectrum. Of the 3, he prefers American Tower, the most international of the group.

Bricks and mortar retail in general has been under pressure all year. He has focused on Internet retailers such as Amazon (AMZN-Q). However, he does have a small holding on this one. It has a pretty defendable position in the big box club stores. Just dropped 10%, and he is not happy to see anything drop that much. This is basically trading right on its 200-day moving average. When Amazon acquired Whole Foods, every retailer within shooting distance, got taken out to the woodshed. He would use a 200-day moving average as a Stop. In the short run, there was a knee-jerk rejection, and some companies will likely rise out of that. Feels this company is less likely to be hurt than some of the other big grocers.

Currency? Canada has a slightly lower growth rate than what they are seeing in the US. Also, the Cdn$ gets impacted by energy. The Cdn$ is likely to remain weak, and even weaken further from where it is. He has no problem buying US$ with our Cdn$, because we could be buying less a year from now.

Technology is probably the most important secular long-term theme in the market. This company plays right in the middle of a couple of the key themes, but the most important is Cloud and Search. He sees signs in the near term that some of the more cyclical sectors, like financials and industrials, may be seeing some rotation into those names with a little money coming out of technology. (See Top Picks.)

The media group in general has been doing well recently, but this one is lagging. Over the past year, their share price has performed worse than over 50% of the stocks in the market. He would prefer Comcast (CMCSA-Q) or Shaw Communications (SJR.B-T). Shaw has the new X1 network that will allow them to get a lot of growth.

(A Top Pick June 14/16. Up 55%.) The whole semiconductor group has been on fire since March/April of last year. This one is a key company in that space. You could also use the SPDR ETF XSD-N.

(A Top Pick June 14/16. Down 21%.) The Pharma group came under pressure last summer, and continues to be under pressure. He prefers the biotech space. (See Top Picks.)

(A Top Pick June 14/16. Up 20%.) One of the leaders in connected devices in the industrial area. In the world of “Internet of Things”, they make sensors and connected devices. He continues to really like this space. Still a Buy.

A great company, but utilities are not his favourite space. If you think the economy is getting better, it is not the most economically sensitive group. However, if you think rates are going higher slowly over time, then you need to be able to find a dividend stream that will grow a little every year. Although this company is not a rocket ship, it has probably had the best record in Canada for dividend growth. A good mix between regulated utilities and non-regulated.

This is right in the centre of the semiconductor theme. They have an international group of clients and lots of international revenues. It is growing quite nicely. Revenues, over the last 3 years, have grown from about $700 million to about $1.3 billion.