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ZWE-T vs. ZPH-T. ZPH-T is the put write strategy. If we have an acute sell off, both will lose a little money. If you are branching outside of Canada, there is no dividend tax credit, but put write gives additional income. He recommends having a bit of both in order to diversify. Europe is a bit more attractive over the next couple of years.

ZWE-T vs. ZPH-T. ZPH-T is the put write strategy. If we have an acute sell off, both will lose a little money. If you are branching outside of Canada, there is no dividend tax credit, but put write gives additional income. He recommends having a bit of both in order to diversify. Europe is a bit more attractive over the next couple of years.

Market. Market expectations on tax reform were for nothing getting done. Now it looks like they will put all their weight in getting a tax package done. Whatever they get done should be disappointing and we should get a sell-the-news reaction. Over the last three months earnings revisions have gone down on the S&P. Canadian tax changes will mean nothing to markets initially but over the long term it may discourage the Canadian entrepreneur. The government of Spain may fall as a region tries to separate but markets are not reacting.

CAD$. On the rate hike front, the BOC is more likely to match the US Fed. He would not look for an October move -- December maybe. In the next 6 months the CAD$ will go from 79 to 83 cents. Below 80 cents he wants to be hedged. He is fully hedged today.

Oil is probably $50 plus or minus $10 for some time. HSE-T over the last year peaked when oil was in the mid-$50s. It is priced for $50 oil at present. We are in the middle of its trading range. He has been lightening up a little on oil recently.

Bitcoin. Governments don’t control it. He believes we are moving to electronic-only currencies globally. He does not think governments will allow alternative currencies with unlimited amounts in circulation. Electronic currency gets rid of the gray economy. GBTC-N is a speculative instrument.

MRU-T will sell some of their 10% holding in ATD.B-T in an orderly way. The stock price leveled out over the last couple of years. He would like it if it pulled back a little. The forward looking PE is 17, a little high. He would not buy it today while this M&A is going on.

Equal weighted Canadian bank covered call strategy. Banks should settle into a trading range over the next couple of years so buy low and sell high. Wait until it pulls back. You could trim your position right now.

He has been cautious for a year and a half. There are defensive things you can do. He runs portfolios with half the risk of the general market using covered call strategies, for example. Make sure you are globally diversified. Don’t sit in cash and wait for a pullback. It may be 2019 before we get a pullback.

Educational Segment. (weekly series) What Investor Personality Are You?: 4. The Independent. A lot of behavioral learning has been incorporated into the body of knowledge. The independent is a BNN watcher, reads the paper and is interested in being involved in the investing. These investors are susceptible to a self attribution bias – they take credit if it works and blame the other guy if it doesn’t. It causes portfolios to be concentrated. They should focus on diversification.

Market. We are into 10 dangerous days. This is a time when companies give negative guidance and analysts reduce earnings estimates. We had hurricanes and earthquakes this year. After that things look better. We are about to enter the period of seasonal strength for US and Canadian markets. It takes until the middle of October for the strength to start. It should happen again this year. The first quarter of next year should be even better.

(A Top Pick Aug 4/17, Up 2%) It had a good run until about two weeks ago. You may want to take this position off.

(A Top Pick Aug 4/17, Up 5%) The period of seasonal strength is from now until the first week in January. It has a nice upward trend, broke to new highs recently, and the technicals are great. Farmers want to reduce taxes by buying fertilizer after a good year like this year.

(A Top Pick Aug 4/17) You want to hold it until two weeks from now when the markets in general start to move higher.

The technicals are positive as well as the seasonality. It takes off this time of year. 60% of Dow company earnings are international. Currency means you have a 5% growth already just from currency changes.