N/A

Market. Every month this year the S&P has been up. Since 1987, we have not had a calendar year with 12 consecutive positive months on the S&P. It seems like it is a little more on the radar these days. You have synchronized global growth creating greater global output. This tightens the labour market. It attracts capital investment. He thinks we are getting increasing productivity that could surprise to the upside. However, we know we are closer to the end of the party than the beginning. We have to be careful about it. He thinks inflation is coming. If rate hikes are coming, he likes the slow and steady policy. Every end to a cycle has its own flavour. This one has rates going up. There could be more increases in futures in 2018. The market is pricing in two increases. It could end with compressing valuations as well as decreasing bond prices and decreasing liquidity.

BUY

There is some regulatory risk in that they get so broad that regulators see it as anti competitive behavior. Regulators would mangle a high growth company like this. Right now the growth is good even if stretched. It is all working, but there is nothing new to the story. Technically it checks all the technical and fundamental boxes.

BUY

WFC-N has been in the news recently with sales practices. C-N is still in line with JPM-N, which is the best in breed. C-N is more emerging markets. You eventually have to choose.

BUY

It trades at a 25% discount to WFC-N and JPM-N and is less internationally exposed. BAC-N are returning capital hand over fist. Regulations are continuing to come down. The FED feels capital requirements have hit a max. Regulatory reform is a big positive.

DON'T BUY

They are having discussions with DIS-N over assets. DIS-N is best in breed and have the best ability to monetize content. They are exceptional at it. Ultimately they will fix the ESPN stuff. However he would not touch any media right now. When it turns you want to go with the strong one, DIS-N.

BUY

It’s a good idea to be exposed 10% to the high flyers. You should use stops. You have to hang in if you are right too early. They beat earnings consistently and have a buy back in place right now. They have good strategy and a good management team in place. It has not broken technically.

DON'T BUY

Their earnings profile has been in decline. They have been beating because they were communicating with the street very well. They have global growth. However he thinks there are more interesting opportunities.

DON'T BUY

He would not touch it technically. The roll over means you have a steep climb back up. It has had declining earnings estimates.

PAST TOP PICK

(A Top Pick Jun 13/17, Up 23%) They have a couple of headwinds right now. There is a health insurer thing rolling off that is a one year thing. He continues to like them.

PAST TOP PICK

(A Top Pick Jun 13/17, Up 16%) They are focused more internationally, which is one driver. They are missile defense and cyber security. Both are good.

PAST TOP PICK

(A Top Pick Jun 13/17, Up 17%) They are engaging mobile and driving traffic. They have gone to a healthier menu and better suppliers. They are back to a growth footing.

WEAK BUY

Spanish Bank. Synchronized global growth benefits it. It drives productivity growth. So financials should do well. There is still rate correction to go on there. The yield curve is steepening there. It has a history of being aggressive with credit and M&A philosophy so he would be careful there. On the whole it checks a lot of boxes.

DON'T BUY

The stock price has taken a pretty big hit although the earnings numbers have been okay. It is not in a sector that he likes.

WEAK BUY

Utilities have been fantastic. You get that bond proxy. Rates have been okay. Among that group, water has been great. He likes the water and utility themes. He would have preferred an ETF rather than one stock in the space. The catch here is valuation. It is an 8-9% grower at a 20+ times earnings. H does not see a huge risk unless rates go through the roof.

WEAK BUY

It is not as diversified as JNJ-N. He prefers ETFs to capture the theme because you don’t get the risk.