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Market. The German chancellor resigned. He has been saying Europe has been fragile for years. The real story is that even when we went through the Greek crisis 6-8 years ago, we are now going through the Italian version and he thinks it will be ugly. It is a question of who is going to write a question the next time it is necessary. This is the beginning of the unwinding of the strength of the European block. Interestingly the markets are up today. This is going to get worse before it gets better. He sees 2020 as the biggest recessionary risk. This is a trade at best. As we get close to mid-term US elections, uncertainty reduces and the markets like that. He thinks the market highs might be in and we might be building a top over the next year.

US Banks. He still does not love them, but for the first time last week he exposed himself to a currency hedged version because it has currency exposure. It was a small bet because some small relative value is developing.

ETF to short the market. Horizons have the ones in Canada that go inverse, but don’t use leveraged if you want to hold for some time. Shorting S&P vs. shorting specific stocks has not done much better.

CPG-T vs. SVE-T. He does not think the energy sector is coming back in a big way any time soon. There are over sold indicators so it is okay as a trade but not for long term. We need pipeline capacity. He is fine with CPG-T.

CPG-T vs. SVE-T. He does not think the energy sector is coming back in a big way any time soon. There are over sold indicators so it is okay as a trade but not for long term. We need pipeline capacity. He is fine with CPG-T.

He likes the mid-cap sector. It is a sweet spot. He would be okay with the holding for a year or less, but eventually the market will price in the expected recession.

He prefers ZWU-T instead of just buying individual stocks. No one knows which one is going to do best. You get diversification. He would step into it because it is defensive.

[Caller asked about BCE-T.] He prefers ZWU-T instead of just paying individual stocks. No one knows which one is going to do best. You get diversification. He would step into it because it is defensive.

Trade tensions with China are going to see demand keep falling for base metals. Sometime in 2021 a lot of these stocks are going to be cheap and have growth for 10 years plus, and that is when to get into them. This is one of the purest plays in the base metals space.

Here is a company that has gone around buying up other software companies. Now we are late in the investment cycle. The multiple got to a high level so he would expect consolidation.

All the weed stocks are short for the next while. The sector is priced for perfection 10 years from now. There are really no earnings in the sector.

Educational Segment. The funding market – The Euro market call. Euro dollars are financial markets linked to the libor market. All the banks in the world participate in it. The Euro dollar still goes out 10 years. Each contract is a three month interest rate. It is a series of three month interest rates that equate to the year. The curve graphs a year, a month and a day ago tell us that the yield curve is starting to change. 2020-2021, rates are expected to be slightly lower in Europe. This is where we have to worry – when we get the inverted yield curve a year out. In history the average correction in recessions is 29%. We are starting to see late cycle behavior.

Market. He does not pay that much attention to broad bellwethers. He wants to beat the indexes, not match them. He finds that the fund size is not an inhibition to active management. 75% of active managers have less than 15 years experience and so may be incentivized to hug the index. There is no substitute for experience. There is lots of scope for interest rates to continue to rise slowly. When they are lower, the price value of a basis point is greater. The FED should want to continue to move up the front end of the curve so they have dry powder.

They make machine vision systems. They are one of three. They are very interesting businesses. He sold earlier in the year because it had done very well for him and there was a slowing in capital spending plans in automation. He would always keep it on the watch list.

One of the largest healthcare REITs. They are a very well managed company. He does not recommend it simply because it is real estate. When interest rates are rising it is bad for REITs.