He loves the cyber-security theme. Earnings growth is projected in the 20-25% range. A high-quality name in the space, but trading at 20-40 times earnings. Be cautious.

He likes the healthcare space. This is a high-quality beta play in the space. Don’t expect it to be super defensive, but thinks global hospital spending will continue to rise.

Energy tends to be a late cycle participant. The pipes and midstream companies have a good yield and there is capacity constraints in the US Permian area that will create good tailwinds for this. Yield 7.5%.

Software tends to be more stable and he likes the business model. He worries he may regret this one if the market pulls back, but likes their earnings growth potential. Yield 1.7%. (Analysts’ price target is $124.32)

(A Top Pick October 10/17 Up 0.2%) He stepped out of this a month after they recommended it. It broke down on the relative strength measure and has not done much else since. He likes the healthcare space still however.

(A Top Pick October 10/17 Down 11%). He stepped out of this back in January. He saw it as the economic engine of Europe, but found that it has suffered from tariff concerns. He would prefer to invest in France at the moment.

(A Top Pick October 10/17 Up 19%) As interest rates went up, they made great returns on holding investor deposits. For every 1% increase in Central Bank rates, lead to a 9% increase in their earnings. Deposits have now become very competitive once again, which will now lead to a reduction in margins he thinks. He stepped out in the summer.