BUY

What would you buy in the forest sector? He has little exposure here. Lumber stocks were hurt with American trade talk, though they benefit nicely from a lower Canadian dollar--and he thinks the CAD will decrease more. Buy IFP-T.

COMMENT

How much cash to hold? He lived through crashes in 1987 and late-90s. He holds at 30-40% cash.

COMMENT

Are U.S. interest rate hikes not good for U.S. banks, because banks like JP Morgan are recently down? Generally, rate hikes are good. But the yield curve is now flattening. Short-term rates are rising, but long-term less so, so this works against the banks. Instead long rates need to rise higher than the short ones. Also, expectations over bank reports have been too night, and loan growth has been dismal.

DON'T BUY

They took a huge hit with their hepatitis C drug, their key product, facing generic competition, while they have nothing else in the pipeline. They need to acquire or do something with their cash to grow. Sales are flagging.

TOP PICK

They trade at low valuations and offer future growth. They make satellites, then bought DigitalGlobe to create pictures from space that many industries like agriculture to maps use. Trade at 8-9 forward earnings. Cash generation. They will eventually pay down their debt. (Analysts' price target $79.91)

TOP PICK

They and Facebook own so much online advertising. They've had 32 strauight quarters of 20%+ growth. They have many investments, like Youtube, that they haven't fully milked yet; and Android operates 60% of the world's cellphones (Analysts' price target $1,236.11)

TOP PICK

All this 5G technology will benefit chip-makers like this one. Trading at 16x forward earnings. They ahve disputes with Apple and China, so settlements from those will benefit QCOM. (Analysts' price target $63.57)