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Buy more of this ETF or buy the banks themselves? If you want some diversity and you’re not investing a huge amount of money, then the ETF is a great way to play the banks. There is a little management cost on this, so that will lower the dividend a little. However, all in all, you are getting diversification and more exposure.

Sell this and buy back Bell Canada (BCE-T) that she sold? BCE is a solid company and pays a good dividend and has a good track record of growth. The sector was affected by the Bank of Canada unexpectedly raising interest rates, and the more defensive types of companies pulled back. They are both good companies, but there is probably more growth potential in BCE at this time. You could also look at Telus (T-T), in that you get a little bit of Shaw and it is more a Western Canadian domiciled type of company, giving you a little more growth potential then you have with Shaw.

This is at a multiyear low. There are concerns about the viability of some of the drillers, which is a bit of a paradox, because if we are worried about the oversupply of oil, oil has to get drilled out from somewhere, and it should be these companies that are doing the drilling. A very cyclical play. Too much of a gamble for him. Prefers Canadian Energy Services & Technology (CEU-T), which is a little more exposed to the US.

This just continues to perform, obliterating targets. They are insulated because it is such a niche market. The stock is expensive, but trades at a premium for a reason. The targets are probably 10%-15% higher, so it is probably a stock you can continue to own.

One of the blue-chip names in the industry, and has withheld the storm better than most. Has diversity in their upstream, midstream and downstream assets. If oil goes down, but are still charging the same at the pump, they end up insulating themselves. If uncertain about where oil is heading, this is a good name to own. It isn’t going to have as much torque though, when oil does move up.

Will these types of companies be viable in a low oil price environment? This one has proved that it is going to weather the storm, so if you are a high-risk investor but want high returns, then he would just temper the amount you are investing into companies like this.

There is a lot of uncertainty in this industry. He feels there is going to be a supply/demand imbalance and the price of these stocks should go up, because he understands there is not going to be enough supply to handle the demand there is going to be. We are still not sure what the legislation is going to look like. If he were in this space, he would prefer Canopy (WEED-T), because it seems to have the biggest track record and more of a valuation behind it.

In the midstream gas space. Recently completed an acquisition of Veresen which has increased their capacity and increased their potential for future growth. Most of the pipelines have come down in the last couple of weeks. Expects there will be growth opportunities over the next few years. Dividend yield of over 5%. (Analysts’ price target is $50.)

A conglomerate of restaurants that are milestones. This was in a downtrend, but had some decent earnings. Announced an acquisition of Pickle Barrel restaurants in Ontario and Québec. It seems the franchise options work and make money, so he is looking for 15%-20% upside from current levels. (Analysts’ price target is $27.)

This has gotten beaten up over the last 6-12 months. A short seller report came out questioning what they need to spend on some of the CapX on their airlines, as well as if dividends are sustainable. The company came out with good earnings which solidified their dividends. The stock rebounded up to around $34-$35, but has now come back down to around the $30 mark for no rhyme or reason. (Analysts’ price target is $42.)

Inflation and Raising Interest Rates. The Bank of Canada has been talking about recovery and strength but we haven’t seen any real inflation yet. Unless they can maintain the momentum of the current recovery he doesn’t believe they will be in too much of a hurry to raise interest rates.

Impact of Interest Rates on the Financial Sector. There is already a little bit of expectation built on the price of interest-sensitive stocks. He is not too worried. A lot of those stocks have fairly good yields, and if we don’t see interest rates rise on the fixed income side, people are going to stay on the equity side. Also we’ve seen the banks investing a lot into IT lately, so don't be surprised to see some cost cutting coming down the road on that side. We could see some efficiency gains and cost-cutting that would offset the lack of growth on net interest margins.

Consumer Staples or Discretionary? He prefers staples, we’re seeing some sign of distress in the discretionary sector, particularly, retail is struggling right now not knowing what impacts the technological changes happening in the sector are going to have. You’re less vulnerable with consumer staples, although they have their own problems, notably, wage increases coming in in Ontario and other provinces.

They seem to be executing fairly well to increase their capital base. They are going to have more sources of income going forward with a target of significant compound growth rate in earnings and dividends over the next 3 to 5 years. Recent setbacks were more of an opportunity than a sign of worst things to come. If they continue executing well he thinks we could see an appreciation in the 20-25% range in the next 5 years.

It is one of his principal holdings in the financial services sector. We’ve seen all the banks doing fairly well recently and Royal Bank looks more expensive than the others now. If he was investing in banks today he might look elsewhere. You need to look at dividend growth. We could see a setback in the prices of the banks should the market have a precipitous fall.