Undervalued? Familiar with it but doesn't own it. Anytime you're looking at the financial players especially if they are Canada-centric you want to understand if there is any mortage business and what that book looks like. He is concerned about Canadian household debt now that we see rates start to rise. The discount that you see often in the smaller financial centers in Canada is not that the market is not aware of it or that it's a bargain, it's more to speak to the fact that there is risk in being concentrated on the Canadian economy.

They reported overall pretty good earnings. You have to be patient they've only recently entered the U.S market and it's going to take time. TD has the first-mover advantage there and they have benefited more significantly from the U.S. Thinks now is a good buying opportunity as a long return play. Historically anytime the yields of the Canadian banks get in the high 4-5% it's always been a great buying opportunity. Current yield is pushing up against that 5% number.

He is cautious and not overly optimistic. Growth is slowing and interest rates are still on the rise. Thinks it's prudent to have some cash going through 2019. Depends what your options are, if you have the ability to invest in private markets he would have a lower cash weighting, but otherwise if you are more focused on public markets seeing 10-20% cash would not alarm him. Also depends how active you are, if you are an active manager of your assets you can have more cash and penny pinch on the days when markets sell-offs and add. If you are sort of a leave it and not look at it then you are likely to have less cash, closer to 10%, and look for a more meaningful correction to buy.

He thinks that a lot of the easy money has been made. Although interest rates are going up, what they are paying on the deposits is not much less then what they are loaning the money out. The historical benefits of net interest margin are not being realized to the fullest at this time. You do need to have financials in your portfolio. He would not be going into 2019 overweight financials. Bank of America is a great name, its conservative, and well diversified but he just don't think we are in an environment where you are going to want to be overweight in the banks.

Vermilion (VET-T) vs Crescent Point (CPG-T) Neither of the two. Not overly optimistic on energy. He is underweight energy and sees little opportunities. Doesn't see supply cutting down anytime soon and we need that to happen for oil prices to rise. Prefers Suncor (SU-T) which is more conservative and integrated and has a decent dividend.

Vermilion (VET-T) vs Crescent Point (CPG-T) Neither of the two. Not overly optimistic on energy. He is underweight energy and sees little opportunities. Doesn't see supply cutting down anytime soon and we need that to happen for oil prices to rise. Prefers Suncor (SU-T) which is more conservative and integrated and has a decent dividend.

(A Top Pick Dec 06/17, Down 27%) Hasn't had a great year. Had a miss in Q3 and the stock has been punished since. The tariffs haven't helped the story because the market doesn't really undestand the impacts. Although it trades on the TSX, much of their operations is actually in the U.S. The decline is justified but thinks 25% is overdone. Still holds it and adding to it patiently and strategically.