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This suffered in the global crisis, like all other banks. They do business in the US, Latin America and Spain and are doing OK. Higher interest rates are coming and they will be good for the banks. This should do well in the next 3-to-5 years.

BP recently made a big acquisition that the market liked. Its balance sheet is reasonable and its last earnings results were good. It recently increased its dividend. Oil is finding a level at $70 or higher, which is good for BP.

Traffic congestion in China is severe, making online delivery very attractive. As China gets wealthier, this business will increase. However, funds are starting to fly out of emerging markets and to come out of high technology stocks. There could be a meaningful correction in the price of this stock, so even though it will do well over the long term, it might be best to take some money off the table for now. He sees this as a high-quality stock and will be interested when its valuation looks cheaper.

This is an oligopoly. There are four companies in the industrial gas space and one of them, Praxair, is being acquired. Air Liquide is the biggest company in the world in this space. He considers this a great company that has been a solid performer for a long time. (Analysts’ price target is €114.38)

This is part of his Canadian portfolio. From the point of view of Canadian holdings, this is a good company to own because they’ve made two good acquisitions on the wealth management side. These will be accretive. Also the market seems to be successfully absorbing higher interest rates. Over the longer term, this has been a solid performer and it offers a good dividend yield. That makes it an interesting story even from the global perspective. (Analysts’ price target is $86.29)

This is the parent of Fresenius Medical, which operates dialysis clinics. The parent company also owns hospitals and a project management business. The dividend has been growing about 12% per year for about 15 years. (Analysts’ price target is €77.36)

US vs. Canada. Wind at your back in US. Canada trails, but still gets pushed along by the US. Canadian economy doing well, but trouble is environment not as hot as US and valuations are getting out of alignment. Canada is now cheap. Headlines, like trade, are affecting Canadian market. Mexico wants a tri-lateral agreement, but Trump is trying to break up Canada and Mexico to create a weaker position. Unwanted volatility, but opportunity in next 6-12 months for Canada to catch up. A commodity bid will help even more. Sees Canada outperforming in next 12 months.

Increased volatility. VIX is still historically low. Haven’t seen markets down 3-5%, only 1-2%. Have seen sector rotation from tech into consumer staples, utilities. Would be more concerned about volatility if interest rates weren’t in this tight range.

Apple earnings. Positive impact. He owns it. Stellar numbers today, which changed the tone. Now we’re seeing the tech companies diverge.

Keep at least 10% in bonds? Bond markets aren’t a great earning environment, but you need to preserve capital. The day the market’s down by 10%, you can reallocate to equities. It’s a holding place, and better than cash. With GICs, you have to lock in for 3-5 years. You have to allocate something to bonds.

Haven’t looked at it for 2 years. REIT sector hasn’t had great tailwinds, with rates going up. But now REITs have outperformed the TSX. Artis reissued securities, has assets in the US. Balance sheet getting a bit better, solid management. But company is unfocussed. Other REITs are doing better. Struggling to find its identity. Avoid it.

Private equity. Hasn’t looked at it for a while. Tucking in acquisitions. Missed a couple of quarters. Balance sheet better than it was. But in the end, still not hitting targets. Going to struggle over next year. (Analysts’ price target is $19.72.)

An ETF or bond recommendation? Cheapest is XCB, which tracks corporate bonds. About a 3% rate of return. Investment grade bonds, with a mix of government and provincial. People buy bonds grudgingly, but there’s a reason for bonds when the market gets volatile or drops.

Solid management. But it’s in retail, which is not doing well. Transitioned out of US. Sears and Target receiverships. Nothing wrong with it. Neutral on it. Doesn’t like the retail sector, with the Amazon effect. Doesn’t foresee anything that will transform it. (Analysts’ price target is $27.00.)

The Amazon Effect. There’s always an overreaction in the media. But Amazon is not going away. We’re all getting more comfortable with online purchasing. Bricks and mortar is struggling, except perhaps for Walmart. Drag on earnings. If you have hard assets in the retail space, you can’t turn tomatoes into bananas.