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Market. NAFTA: He believes they are at 50 out of 2000 pages of the agreement in negotiations. There may be two more meetings by April. If they haven’t moved ahead by July 1, when the Mexican elections take place, then he thinks Trump will be giving them 6 months notice to get the deal done and it may be a little bit worse for Canada and Mexico. He expects Trump in his next state of the union address to stay on script. This could be a surprise to the markets. US earnings look very, very good, both from a sales and a bottom line perspective. The question is how much of this is priced into the markets.

You could ask if there is a better way to hold it so that you get a currency hedge. ZUH-T does this to give you healthcare sector exposure. He would wait until the dollar moves back to 77 cents. If the Canadian dollar was higher than 80 cents you would not want hedged exposure.

Canadian REIT Recommendation. Regardless of which one you use, we are at the high end of valuation in REITs. He thinks the Canadian sector will start to sell off with rising rates, but the US REIT sector is just starting to become interesting.

The biggest challenge is that implied volatility is so low that you cannot harvest enough yield from a put write portfolio. You are exposed to the US$ also. ZPH-T has a currency hedge. He would prefer this after the dollar pulls back.

BANK-T vs. ZUB-T. Exposure to US or International banks. The yield curve is telling us we are headed toward a recession 6 to 18 months out. The yield curve is flattening so banks’ net interest margins will not improve. He does not want to chase them here.

Global industrial ETF, hedged. Industrials have generally outperformed over two years but have been parallel to VT-N for about 6 months. When we go into recession these will turn down. You are chasing it a bit here and he would prefer to be more defensive.

Educational Segment. The Bond Market and Interest Rates. Bond gurus over the last couple of weeks have come out and said that the bull market for interest rates is over. It has been 38 years now. One reason is technology as it advances and reduces the cost of everything. Society is aging and last year people took more money out of social security than money was put, into it for the first time. But he does not believe the end of the bond bull market is coming. He thinks the yield curve will invert by the second half of the year for North America. This does not support 24 times trailing earnings. Typically we eventually get a 25-50% correction.

BANK-T vs. ZUB-T. Exposure to US or International banks. The yield curve is telling us we are headed toward a recession 6 to 18 months out. The yield curve is flattening so banks’ net interest margins will not improve. He does not want to chase them here.

Market. He has been seeing the markets as expensive and the euphoria worries him. Marijuana is the kind of mania you see at the end of a market. He focuses on Canadian companies that are expanding in the US. With tax cuts it is an extra boon.

It is his largest position. It has had quite a move to the upside recently. 3 analysts started covering the stock and they made an acquisition. They are very well managed and there is good growth in wine consumption. They also benefit where Ontario grocery stores are being encouraged to carry wine. Buy it on a dip and put it away. He does not think pot legalization will cut into wine consumption.

They are a meal kit company delivered to the home. Their penetration is incredible. The service is very big in Europe. They are focused on growth but focused on the bottom line also. He thinks the trend is here to stay. They could become an interesting acquisition target.

He has not seen anything specific recently that would explain the drop, except the effect of interest rates. In the past it has always been a buying opportunity.

They cut the dividend last year mainly because of a problem with piracy that cuts into subscriptions. It has returned to profitability. It is extremely cheap now. The remaining dividend is safe.

It is a trucking company. The stock had come down. The sector is doing quite well. They have a lot of cross border business and NAFTA changes could affect them. Also they lose business as AMZN-Q expands and takes trucking in-house. He passed on it when he last analyzed it.

He has been looking at it for the last few months. He likes it. They are a basically a start-up. They got some big orders and turned it into a business. It’s still a little on the pricy side but he likes what he sees. He thinks they are onto something. He is looking closely at it in case it drops low enough.