COMMENT
Main headwinds or tailwinds for stocks right now? Market's been struggling for quite some time to figure out a value for companies. Some companies are doing well, and others are not. If you think about where the economy might be in a year, how high is high when interest rates are zero, and is there value in the struggling stocks? Market is digesting Covid flare-ups, US election, politicians bickering about fiscal stimulus. Market's in flux. Don't read too much into any one given day.
COMMENT
North American banks. Low interest rates do pressure profitability. But the banks are such dominant players for so many different parts of the economy. They're much stronger now than they were going into the 2008 crisis. Strong demand for borrowing money, and banks are making it easier for clients to make those payments. US consumer is in good financial shape overall. Banks are increasingly finding other ways to make a living.
SELL

Struggling. Restructuring since the financial crisis. Trying to repair balance sheet. Aircraft still struggling, and too early to tell how long it will take to recover. Look at Raytheon instead. Defence is doing exceptionally well, plus aerospace and security exposure. Exceptionally well run.

BUY
Defence is doing exceptionally well, plus it has aerospace and security exposure. Exceptionally well run.
DON'T BUY

Up from its lows. He stays away from hardware producers, as it's hard to differentiate products except for Apple. Issue of timing. Huawei is still a serious player. Hardware is traditionally a hard business to make money in.

DON'T BUY

A long drive ahead of it. Not the best brands in their dealership package. Overextended, so it's having a garage sale. Exposed to the west, which is struggling. Canadian consumer is one of the most indebted in the OECD. Economic cycle is still questionable. An alternative is APR.UN, with about an 8% yield. They own the dealership buildings and property and lease them. Attractive proposition.

BUY
They own the dealership buildings and property and lease them. Attractive proposition. Yield is about 8%.
BUY
Great long-term play. After the election, if trade wars settle down, this could be a beneficiary of relaxed tariffs. Great job of managing through a difficult environment. Last quarter had blockbuster earnings.
COMMENT
After a black swan, how do you know when to buy? Tough question. Think about what your comfort level is. Big believer in knowing what businesses you own. Large moats. Survivors. Products and services that are durable, and needed in the long term. Durable franchises that touch people daily and have strong brands. Doesn't get too fussed in a downturn, and they did no selling. They started picking away after March 23, mostly on the way back up after things calmed down.
BUY
Stock's off on an announcement about a plant shutdown. Dividend is well covered. There is worry about the sustainability of investing in energy. KEY is a processor of energy. Yield is 9.5%, which gives you your money back in 5 years. Well run. Confidence in the company. Good as income for clients who can take a little bit of risk.
DON'T BUY

Owns legacy position. Hasn't bought in 10 years. Their program of building, acquiring, boosting the dividend, and then raising money was unsustainable. Concerns about oil volumes they can shoot down the pipes. Their customers are in pain. Massive debt. A challenged company. Yield is about 8.2%. Instead, he'd be in Keyera.

WEAK BUY

Well run. People have qualms about its international operations. Not as strong an investment franchise as JPM or BAC. You could take a stab at it.

COMMENT
Predictions for tax-loss selling this year? Tough question. Generally rotates around when stocks are more or less volatile. Only a few stocks have recovered to pre-Covid peaks. Enough companies have favourable long-term outlooks that you can buy those right now. Tax-loss selling now takes place a lot earlier than November and December, and may have already taken place this year.
BUY
Fantastic growth story. Lots of locations globally. Ability to grow in Canada will be somewhat stunted by competition law acts. Will be more locations in Europe and North America. He's always balked at its growth by acquisition strategy. Savvy operators who have brought debt down. Gasoline markets are attractive, which will boost profits. Innovative, strategic assets. Worth owning.
PAST TOP PICK
(A Top Pick Aug 20/19, Down 9%) Class act. Rock solid balance sheet, outstanding leadership. Great investment banking, large digital presence. Well capitalized. Good valuation. Being paid to wait while pandemic gets solved is a wise long-term decision. Yield is close to 4%.