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This is heading into the seasonal buy cycle and the stock is building a nice technical base. He expects to see this around $58 on the seasonal rally. It has a Central America partner that will add to its growth. He thinks investors are looking at this as a defensive holding. Yield 0.3%. (Analysts’ price target is $62.86)

He has taken a 10% weighting in this in the portfolio. He likes the technical basing and is expecting good news with the next earnings report in early August. Very good risk-reward and a good defensive holding. Yield 5.4%. (Analysts’ price target is $59.22)

He started buying in December and thinks the market has beaten the stock up over the Trump Administration move to curb pharmaceutical pricing. He thinks the market is underestimating sales growth. The sector is in a secular bull market. Yield 3.1%. (Analysts’ price target is $69.16)

(A Top Pick July 20/17 Down 4%) The gain has evaporated into a slight loss, but he sees this entering into a bullish seasonal cycle so will hold it. The risk-reward is very good right now. There could be take-out rumours soon as the big banks are purchasing such assets.

(A Top Pick July 20/17 Up 33%). He would keep buying this today. The company helps its customer’s business become more efficient. The long term up trend remains intact.

(A Top Pick July 20/17 Up 21%). It has been losing some value lately, but thinks the risk-reward near $13.50 looks good and this is a previous area of resistance back late last year. He expects to see a test again of $15.50 and would still suggest this as a buy at these levels on a technical basis.

How to play the US trade tumult? You have to look through it. It’ll calm down. US earnings quite good, economy is strong, employment’s good, consumer’s in good shape. In Europe, they’ll start to move off monetary policy, and towards fiscal stimulus, especially in Germany. Low rates aren’t doing anything for Europe anymore.

With the TSX hitting new highs, can investors heavily invested in Canada, expect better than 2% this year? Depends on energy, doesn’t see much happening with financials. Excitement in energy has been due to the lift in crude oil prices, but this is temporary. Not that there’s anything wrong with Canada, it’s just there’s not enough fuel in the tank to get Canada beyond where it is.

Canadian financials. Will they keep going sideways? Yes. Canadians have been heavy borrowers for housing, but regulations have cooled this down. Profits are the fuel for earnings. At end of the day, earnings can’t go up if profits aren’t going up.

Benefit of ETFs. Important to diversify your portfolio. All the big ETF providers have full suite of non-Canadian stocks and bonds, hedged and non-hedged. He encourages people to move outside of Canada.

Covered call ETFs. Covered call ETFs attract attention because of the big yield. Over a longer period of time, a regular ETF will do better than covered call. What you get in income, you give up in performance. They’re very expensive, by at least 0.25%. Looks like it’ll work, but it doesn’t.

Good time to get in? His firm uses only ETFs. This is an example of where ETFs are not the way to go on themes. All the enthusiasm about marijuana is already baked in, so could sell off once it’s legal. Canopy Growth is the Phillip Morris of marijuana. Why pay the premium of the ETF, just buy Canopy Growth.

Ignore this one. A recent arrival. Another covered call ETF. Compare it to ZUH or XLB, which are so much cheaper. If you like the healthcare sector, which he would question with the Trump wild card, be careful and pick a mainstream ETF.

Fixed income ETFs. Protect against capital losses in rising rate environment? If looking for some sort of FI vehicle, and don’t want any capital loss at all, your only option is to buy GICs. A fixed income ETF will still have price movement. When rates are rising, you want short-term, low duration (2 years or less) ETFs. XSB and ZST are good examples. ETF is much less sensitive to rising rates, and when rates start to rise you can go over to cash.

Rate-reset preferreds. Preferred share market in Canada has become complicated with all these resets. He uses HPR, which is actively managed. Would work pretty well in rising rate environment.