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Market. He sees cash liquidity in the market being fairly tight at the moment. In the pursuit of yield, this cash was previously employed via Quantitative Easing into equities as well looking for higher yields along with higher risk. As yields are rising on junk bonds (and bonds and emerging markets, in general), this may now be taking cash liquidity away from stocks.

He is cautious about this. Although the number of users is rising, he thinks they need to see a better rate of growth to monetize the value. He sees the long term growth being somewhat constrained.

He is not into the computer equipment space. He does not buy into the high inventory levels at a peak margins – a classic red flag – in his opinion. He is concerned they will not be able to grow into the current valuation.

This funeral company is in a fragmented sector, yet there is good growth opportunity given current demographics. The stock is up 19% over the year, so he feels the stock needs to grow into this current valuation and it won’t happen overnight.

This tobacco company, falling into the consumer staples sector, is an area he is avoiding. As bond yields approach 3%, he feels bond proxy instruments (like high dividend yield tobacco) will get hit. The fact is, this stock trades relative to yield rates. He would direct you to real estate instead, if you are looking for yield.

This company has substantial emerging market exposure, where there is growing pain economically – like Greece, Spain, etc. He would stay away. If you want bank exposure, he would recommend the US ones. Where there is growing pain economically – like Greece, Spain, etc. He would stay away.

It is a bit of a mess of a company, he says. There is so much work that needs to be done, he sees better opportunity elsewhere and they have a lot to prove. They may need to segment off portions of their company to become successful again and this will take time.

The small and mid-cap pharma sector has been on fire he says. On a relative basis, he believes, this may lead to acquisitions by the larger players. MRK-N has a big war chest to do this. He has not entered this space yet, but it is starting to check all his boxes for entry. He would suggest an ETF to diversify risk, especially at this stage of the cycle.

They have found their niche, but as they grow larger there will be bigger challenges. He still likes their growth prospect, but he is cautious as the market is nearing the late stages of the bull market. He would continue to hold it.

This is a great company, he says, with a well-established track record. The price is getting to the point, where you are paying a premium at this level. He would diversify into other holdings as well, ideally through an ETF such as IHI-N

He thinks you are buying a fund of investments when you are buying into this. Just remember you are buying a portfolio and you should have a long term hold in mind when investing in this.

Spread curves are flattening, which he interprets as a cautionary signal. He would pay attention to the recent consolidation as another sign of caution. The provisions for credit losses are the lowest he has seen – be careful.

He sees secular growth as being positive, but is watching growing inventories in the space. This is not the time to enter into this space, especially with this company. It is an older-school player in the space. He would be disciplined to watch for your exit.

Rumours of the demise of real estate have been greatly exaggerated. If you believe interest rates may pause as the economy slows, this will be a good life jacket for your portfolio. He thinks this is the right time to get in as many others are getting out. It has a broad diversification of holdings.