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Market. The FAANG stocks Facebook, Amazon, Apple, Netflix, Microsoft and Alphabet have attracted so much attention and so much money, that valuations are in the atmosphere and only one of them pays a dividend, and are all in one narrow area of the economy, i.e., Internet marketing. If you try to hitch your star to those stocks, there could be disappointment ahead. The good news is that among the rank-and-file, there are attractive valuations and some opportunities to be had. Economics 101 tells you that when prices plummet, supply dries up. As the global economy continues to rebound, demand for energy should stay firm and prices will come back in line. This is an area for those that have acrophobia at these sites. There are 3 areas of the market that look attractive right now, financials, healthcare and international. Financials got hit hard today as the 10-year treasury retreats to some of the lowest yields of the year. However, interest rates will eventually go higher as the global economy picks up.

This has been frustrating. Healthcare has been battered generally by politicians and high costs. Just completed a huge acquisition of Allergan’s generic portfolio, which added a lot of debt. You have all this promise, but about $30 billion in debt. He still likes the company because of its exposure to emerging markets. It has the largest generic portfolio, but also has branded drugs including Copaxone which will be facing generic competition, but is a difficult drug to replicate from a generic point of view. There is a lot more tailwind for this company. You are basically getting $20 billion of healthcare revenue for only $15 billion of market cap, about 80% off of what you would pay for Pfizer (PFE-N).

A frustrating name. He likes financials and thinks there is promise. The bullish case is that it is trading well below BV and no one is paying any attention to it. The challenge is that it is in the insurance group which is still frustrated by low interest rates, and it is very hard to make money on their float. They have some risky assets that they are trying to spin off. Their execution has been very poor, but he thinks there is some promise.

With hurricane Irma bearing down, he would be careful about getting in this. As a general proposition, he likes this for the long haul. The cruise/leisure industry makes a whole lot of sense going forward. You can never go wrong generally, by going with the largest player in the group. However, you do want to pick your spots.

Energy can’t seem to break through that US $50 figure. With the shutdown and some of the refining capacity in the Gulf, there is less demand for the raw feed stock, which has also depressed prices. Energy has been the worst performer this year, being down about 17%. You buy companies like this for the reserves they control or have in the ground. If you are patient, you are going to see higher prices.

Just made an acquisition of Kite Pharma at a large premium. They have some wonderful oncology drugs. You have to give them the benefit of the doubt because they have a very good track record in terms of acquisitions. Thinks they will be able to use the Kite acquisition to supplement their portfolios. Also, they still have a lot of cash on the balance sheet so they have a lot more options. They can do another acquisition or can buy back stocks. He likes this for the long haul.

MetLife, Prudential or the American banks? He would give a bit of a nod towards the banks. As a general proposition, there are more ways the banks can boost earnings. The purchase of insurance is very much out of favour. Regarding MetLife versus Prudential, he would give a slight nod to Prudential as they have been doing some cost cutting which will help their bottom line.

MetLife, Prudential or the American banks? He would give a bit of a nod towards the banks. As a general proposition, there are more ways the banks can boost earnings. The purchase of insurance is very much out of favour. Regarding MetLife versus Prudential, he would give a slight nod to this one as they have been doing some cost cutting which will help their bottom line.

He is going to steer clear of adding to his positions. It seems to be the most obvious choice because of the geopolitical concerns and Mr. Trump in the White House, but the price reflects all that. He is very leery of paying 25X earnings for an industrial company like this. Thinks it has gone too far and too quickly.

He is optimistic this company can hold its own against Amazon (AMZN-Q) and other online marketers. As an investment though, he has become increasingly neutral, as the stock has moved up dramatically from its low of $57. Their Jet.com acquisition made a lot of sense, and show that they are willing to commit capital to really go head-to-head with the Amazons of the world.

As a contrarian and because this is such a brand name, he likes this and would take a position. Many people don’t realize that in many cases they own the real estate their stores are occupying. There is some upside from the real estate portfolio, and he can see them unlocking some of that value. They are jettisoning some of their underperforming stores.

Bank of America (BAC-N) or J.P. Morgan (JPM-N)? He would give a slight nod to this bank because it is cheaper. Of course, J.P. Morgan has the standout Banker, Jamie Diamond. This one is probably your best pure play for a US economic strong recovery and higher US interest rates. They have a great franchise coast-to-coast. There are lots of loans out there that could adjust higher if interest rates give them a break.

Bank of America (BAC-N) or J.P. Morgan (JPM-N)? He would give a slight nod to Bank of America because it is cheaper. Of course, this bank has the standout Banker, Jamie Diamond. He has nothing bad to say about this bank.

(A Top Pick June 9/17. Down 1.22%.) This is taking it on the chin a little as the 10-year treasury moved back down to under 2.1%, but that is the low point of 2017. These things are cyclical and eventually interest rates will pop up, and a company like this will follow suit. It will rebound once financial stocks start to move up again.

(A Top Pick June 9/17. Up 4.29%.) Arguably your best pharmaceutical company in the world, with the largest research and development pipeline and the largest salesforce. It is not just domestically focused, but has tremendous operations overseas internationally, including emerging markets. Has a nice, juicy 4% dividend yield.