The social media sector, outside of Facebook, tends to have fewer levers to pull when things don’t work. Not his cup of tea at this point because it has a 40 times PE ratio after doubling in the last year. He would move part of the position into something else after the great gains. It is fully valued.

This is highly linked to tech companies like Alphabet, Google, etc. He likes the diversification overall, but cautions it is focused on growth companies that he expects could retrace as the cycle peaks. Yield 1%.

A very small micro-energy company. He would be very cautious and considers this as owning an option – highly volatile. It will either go up like gang-busters or collapse.

This company is in a bad place right now. When the cycle turns down, consumer staples will get hurt early. This is not a defensive stock to hide in, due to their weak fundamentals. Yield 4.6%.

The chart looks great and they have been a consistent earnings beater. He likes the fin-tech space, but this is a smaller player. They also do data analytics. Over 90% of the date on servers globally has been put there in the last 18-24 months. It is not cheap with a 30-40 PE.

At this point in the cycle, it is at 50-60 times earnings. If you think the cycle will continue, you may switch into a lower valuation holding. He might recommend the IGV-US ETF (a North American software ETF) to take some of the risk off.

This falls into the medical device category, which he likes. The stock has gone parabolic and earnings beats have been great. It has a 50+ PE ratio. It will have to grow into that ratio before he would be buyer – needing at least 50% earnings growth.