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COMMENT

Market. He is over-weighted away from fixed income right now as he sees a rising interest rate environment and does not see deflation anytime soon. Mortgages and principal protected notes are better alternatives for fixed income investing. He is staying away from government bonds. Even in a recession (GDP declines in two consecutive quarters), he only sees a 20% potential downturn as a black swan event. He does not see a trade war with the US as being likely.

Unknown
COMMENT

Can Trump win a Trade War? – He thinks free-trade is better for everyone. The major losers would be European Union (where 21% of steel imports come). If it happens it could be disastrous, but he does not expect it to.

Unknown
COMMENT

Bitcoin Comment – He said back in December the price of bitcoin would collapse. He built a pricing model using the adoption rate, money supply, and other factors and calculated a forecasted weighted average value. Current bitcoin prices of $9000 US, he says, suggests an adoption rate of 40% for bitcoin and a 25% likelihood of it happening. He sticks by his thought that adoption will not occur near this rate, therefore, the current valuation should be around $500 US. If you are buying it, you are expecting growth in the adoption rate.

Unknown
COMMENT

Legal marijuana stocks to buy – This is the toughest target to hit, he says, with 15-20 players in the sector. He would buy the HMMJ-T ETF, to avoid unknown factors in one company. This is the safest way to play it right now.

Unknown
DON'T BUY

He sees this company as being in the penalty box although he sees them as the best diversified REIT in the retail shopping mall space. However, if you are scared of the market downturn, it is trading at a multiple at the top of the sector. He also has an issue with the Sears shutdowns. This will not be a double, you are only hoping to capture your 6% yield and a couple percent per year capital appreciation. He would focus on other ones.

property mngmnt / investment
DON'T BUY

This company tracks customer contacts. It is at or near all-time highs and is at 62 times earnings. He likes it is going to the cloud, but they will require 20% compound annual sales growth to defend it and he does not think they are there.

computer software / processing
BUY

He likes this company although it has retraced in price somewhat. If you are not worried about Quebec separating, the 9.5% yield is great. It has about 75 properties. As a more senior REIT, they are able to acquire debt at much lower rates. The dividend is not at risk. He would buy it on this dip. Yield 9.5%.

income trust