N/A

Market. The 10 year bond yield is probably the one factor that will drive markets in 2018. As it gets closer and closer to 3%, things start to change with respect to relative valuation of stocks vs. bonds. The two year bond is now higher than the stock yield. Inflation is starting to creep up. 2% inflation and 2.7% bonds (10 year) is not a lot of income. Canada is losing momentum against the US. The US dollar is weak right now. The Canadian / Aussie spread is a much better indication of the relative strength of the CAD$ and it is really just holding in there. Look at energy and at the slowdown in housing in Canada, and the US looks better than Canada. He is looking at the consumer and industrial sectors as well as financials, in the US.

PAST TOP PICK

4.9% 15 1st Preferred. (A Top Pick Feb 2/17, Up 0.93%) When they re-do their issue it will come with a 3.8% spread. This is a fixed rate reset. It has a floor yield 4.9%. Where income and capital preservation is a focus this one is great.

PAST TOP PICK

(A Top Pick Feb 2/17, Up 7.82%) He thinks the US banks are now a better place to be. It is still a great way to play a rising rate environment. He exited 3 or 4 months ago.

PAST TOP PICK

(A Top Pick Feb 2/17, Up 8.90%) A great US company. He likes the medical device companies. These devices are going to be demanded more and more as we all get older.

TOP PICK

It is an anti-momentum name. It has been a slow sleeper and has not done much. We need to train pilots and they are the world leader in simulators. It is hitting all the right buttons. (Analysts’ target: $23.70).

TOP PICK

They can benefit from the Trump tax breaks. This is number 2 and cater to the medium to small businesses. This is in the sweet spot for American growth. Great margins, 40% plus ROE and a 3% yield that they keep raising. (Analysts’ target: $69.35).

TOP PICK

Liquidity has not gone here. It is the premier gold name. Best growth over the next few years. It is a well managed company. They built this brand new camp in Nunavut. (Analysts’ target: $54.13).

DON'T BUY

It suffered like most Canadian oil and gas producers. They have increasing production in the US but are quite levered to Canada. There is the $30 differential in oil prices against the US. He owns PSK-T only.

BUY

Is the only Canadian oil stock he owns. [see CPG-Tcomment today.]

WATCH

He is taking his time looking at this one. They have really struggled and earnings over the last couple of quarters have been disappointing. But what he likes is that capital spending will eventually fall into their hands. At some point things will turn.

DON'T BUY

He regrets not owning it. The issue is the 17 million cars sold in North America and this seems like a peak to him. This is not when you want to buy auto. He prefers material stocks to this one.

WEAK BUY

Banks have been played as investments that win in a rising interest rate environment. You only get a 3% yield but as bonds goes up they looks more attractive. He does not think dividends will grow as fast as in the past.

WATCH

He watches all the rail stocks. It has struggled. They came out and said that business is good but weather is bad and they will have near term hiccups. At $90 you would have taken the risk out.

N/A

Block Chain. We are at a point in the cycle where psychology is getting more and more important. There comes a point where it becomes psychology and people have a fear of missing out. That is the wrong time to look at names. Fear replaces greed and out they go.

BUY

He likes the name. It has become a casualty of the rising interest rate environment. They are very utilizers of capital. They are in growth areas. They can earn returns conservatively. This is a very good name and in the right kind of businesses.