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What are the pros and cons of preferred shares? They trade like very very long bond and are interest rate-sensitive. Pro: Inflation protection. Rate resets preferreds mature in 4 years that the company can extend for another 5 years. Consider, What is that reset spread? How competitive is it? These are perpetual; a company can keep them going forever. Make sure they are generous to investor terms. He owns a lot of these for clients. They are fixed income proxies and inflation adjusted for interest rates. They pay dividends and are eligible for the dividend tax credit.

The whole group has gotten cheap, but he sees little growth with this one, not until 2020 with some of their U.S. assets. Boasts a 12% discount in its NAV. It's a yield proxy. There are better REITs, but the current price of this is decent.

Defensive vs. growth stocks? Defense has done well lately. He still likes AQN-T and Fortis, though he trimmed the latter. Why? If the market corrects further, then Fortis' price won't hold. But these stocks will be pressured by higher interest rates. This correction won't last forever. Essentially, he's trimmed the best names and reinvested in the laggards. If interest rates continue to rise, then go with growth.

They have the highest return on tangible common equity and the best growth rate among US banks. Citigroup is fine too and they beat Q3 earnings by 5 cents and raised their full-year guidance. For both, he sees 20% EPS growth. It's cheap at 9x earnings.

Citigroup beat Q3 earnings by 5 cents and raised their full-year guidance. He sees 20% EPS growth.