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.
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.
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.
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.