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COMMENT

His outlook hasn't changed since he was last on the show recently. Volatility will continue for the next little while. There will be violent shifts. The technical quality of the recent rebound was suspect. We've seen our peak in economic and profit growth. Profit margins are peaking as material costs and wages rise. We've had a great 9 years, but it can't continue forever. Headwinds, like rising interest rates, are emerging. 2018 reminds him of 1987. He's staying defensive. There will be buying opportunities, but investors will be wary. He's staying on the sidelines with a lot of cash. If he buys stuff, he'll move in and out of it quickly, even tech. For example, he sold some Facebook recently based on valuation, not the headlines.

Unknown
BUY

There's hope for it. Trading at 22 forward earnings which is pretty good in this market. Sure, there are some risks, but they have 2 billion active users. There aren't many alternative apps to FB. They will lose some users on the margins and costs were rising, so he sold a bit recently. But this is not a disaster waiting to happen. Not at all. There is growth ahead. Nobody monetizes their app better than FB, turning viewers into ad dollars.

0
COMMENT

Problem is their acquisitions: major U.S. one with a lot of debt. The pending deal with WGL Holdings is weighing on the stock. Not worried about the high dividend above 9%.

oil / gas
BUY

Sees little or no impact on life insurance, including MFC's Asian operations, from a US trade war. Interest rate rise will help them. They have a good international growth profile, because of Asia. Generally, the Canadian lifecos look good. MFC is one of the few Canadian financials he owns.

insurance
COMMENT

Long-term interest rates aren't rising, only short-term ones and that doesn't benefit the banks. That's one caution. TD's presence in New England is doing well. Recent earnings strong. A quality name. But overall, the Canadian economy reminds him of 2007 U.S., given headwinds like high debt.

banks
BUY

BAC vs. Wells Fargo? He's long the U.S. banks more than Canadian ones, given better economic growth down there. BAC is at the top of the U.S. banks for earnings growth. Prefers BAC over Wells. Once Wells overcomes the recent customer service controversy, it'll take time for the bank to recover.

banks
COMMENT

BAC vs. Wells Fargo? He's long the U.S. banks more than Canadian ones, given better economic growth down there. BAC is at the top of the U.S. banks for earnings growth. Prefers BAC over Wells. Once Wells overcomes the recent customer service controversy, it'll take time for the bank to recover.

banks