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Market. US earnings are even better than expected. It may be that they were shooting for higher numbers than they advised of so they would beat estimates. He is quite happy with how things are going right now. We are starting to see the risk in the FANGs talked about last week playing out. The Bank of England is looking to raise rates for the first time. He is watching Japan as they have said the yield curve is too flat. The unconventional monetory policies around the world are starting to be unwound, starting with the US. It will cause a slowing of economic growth. He would be shocked if there was a NAFTA deal done before the US mid-terms.

A floating rate note is an instrument issued by a corporation where the coupon adjusts each quarter. It is not a money market replacement because there is some credit risk, although not high. It is money market-like because it is linked to short term interest rates. He has shifted a lot of money into floating rate notes because he thinks interest rates will go higher. He has no trouble putting money in. FLOT-N is one he uses in the US.

This is the best quality of dividend payers, pan-Europe. They are diversified around Europe. He likes the exposure and is probably the single largest holder. It yields a little more than 6% with the covered call overlay and it has a currency hedge also.

ETF in Canada with heavy weighting in Chinese high techs. He tracks EMQQ-N in the US. There is not a similar one in Canada. You can trade EMQQ-N short term but it will come out lower in then recession.

It hasn't recovered since oil prices came under pressure several years ago. We need pipeline capacity to sell across Canada and to Asia. They are taking down the leverage on their balance sheet, but he does not see a lot of upside. The issue is the energy sector in Canada.

It is challenged like CPG-T in that there is excess capacity and not enough sales. He can't comment on the merger as he is not an M&A expert.

He has been underweight on China for the last year or so. It has underperformed dramatically over the last 6 months. It is starting to get more interesting to him now. He gets it through a US EFF. China is going to have a challenge holding a 7% growth rate. It should slow to 4-5% over the next couple of years. He thinks ZCH-T will fall another 10%.

GOLD. Seasonality supports it. It is one of his largest positions. He has 25% between gold and gold equities. We are probably range bound. Over the next couple of years we might break out to the upside. He prefers ETFs than to be exposed to company specific risks.

Educational Segment. The Future of Economic Growth is Fake News. Larry does not believe what the US government is saying to the media about maintaining growth rates of 3+-4%. 1950-1973 were the golden years with massive growth in productivity. Today when the government spends money, you don’t get the same bang for the buck. Getting 1.9% growth in the US would come from a deficit.

Market. The fair market value for the S&P is now about 3000. In 20 years he has never seen the index exceed his calculation of fair market value. This would be a peak. Right now the market is stuck in a trend channel with the fair market value on the top and a structural break point on the bottom. If we hit 2500, he thinks we will see a bounce. This will be the case until something happens. He wonders if the market could die of old age. In 1987 we saw the end of the bull market without any warning. The FB-Q and TWTR-Q drops recently could be warning signs.

The big move in this one outside of some trading spasms is probably about over. They had a stunning rise on acquisitions. The problem is that they are now so big that in order to have any impact on earnings, the acquisition will have to be enormous.

When a company pays a dividend out and the stock drops by that much, then it is not a move. This stock is quite cheap. These utilities tend to find their lows as the market is finding its highs. He thinks this is probably a pretty good place to be.

They demonstrate everything that is negative about stock buybacks. You erode your book value and now they trade at 100 times book value. It is trading at only 20 times earnings, however. He calculates a fair market value 46% lower than where it is now. The balance sheet is mediocre, but not strong. He does not think you are buying anything of value with this one.

He would be selling. It has a very cyclical pattern on a value chart. It goes up to 4 times book value and then comes back down. It is at that point now.

It is really cheap if analysts are correct on their forecasts. It has a nice strong balance sheet. If it can get over $18.5 then it will have turned after its long downswing.