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Catalysts to keep an eye on. So many balls in the air right now. Inflation, higher commodity prices, possible wage inflation, possibly inflation expectations are too high, Ukraine. All making it much more difficult to understand where the economy is going and what the Fed's intentions are. You can see this from the volatility in the stock market. One day up, one day down, no consistency. Watch whether the Fed decides to increase by 50 bps, do that for several months, and then slow down. Also watch whether companies continue to beat earnings, but the more important thing is what are they forecasting for the next several quarters. Will they be able to increase pricing, maintain margins, and grow free cashflow? The other geopolitical issues are important because they have an effect on how central banks look at the world, especially in Europe. The IMF brought down global growth projections for the year. Volatility will continue for the next and following quarters at least. Volatility can be your friend, as you can buy companies you like at relatively cheap valuations.

Sectors to look at. Hard to just stay in cash, as you miss opportunities when the market turns around and rallies. You could be in bank or financial stocks, or healthcare which will be more defensive. Interest rates might impact utilities, but they give you a really nice dividend and you can manage through the volatility. For asset allocation, you want to be in an asset class that offsets equity risk. Traditionally, that's been fixed income. You could be in some defensive names, collect the nice dividend, and wait for a chance to change your portfolio to something with a bit more growth when we get more clarity on interest rates and geopolitical situations.

Cloud computing for digitization of workflow. Has done well. Great growth potential and free cashflow growth. He accesses the cloud instead through MSFT, GOOGL, and AMZN. Cloud will continue to grow considerably, though not as fast as during Covid. Increased competition means own the bigger players.

Now an aerospace and defense company, BMW owns the actual car brand. A restructuring play on jet engines. Defense and power divisions are stable. Revenue will grow once airlines start buying more aggressively. Not expensive, but choose another industrial.

Still likes it. Illiquid. High multiple. Great buying opportunity. Great Canadian name, with a huge US base. Asset light, very little capex. Grows organically quite nicely, plus successful tuck-in acquisitions. Good market share and they can continue to buy in a fragmented market. Contracts are inflation protected.

Great Asian franchise. Asset management business has been tough, decreasing margins. Will continue to do better, especially as we see less volatility. Worth owning here. Nice yield of almost 5%, not trading at a huge multiple at 1.2x book.

Money not flowing to venture exchange commodities. He doesn't buy a lot of commodities. When you look at gold, you'd think it would be substantially higher. But reality is that some investors have gone to Bitcoin. Also, a lot of commodity companies realize investors are more interested in their balance sheet and returning capital to shareholders, rather than just going out and buying assets. Plus, people are unsure whether commodity prices can be sustained for a long time, but might go back to more traditional levels. Lastly, in this volatile environment, people are much more wary of being in smaller cap, highly volatile securities.

Big cap oil is reconsidering how they deploy capital. They're working on returning capital to shareholders, paying down debt, buying back shares rather than building new projects. That's why you have this tight issue in the oil market. Companies are not expanding production. It will continue to do well as a cashflow machine.

(A Top Pick Apr 06/21, Up 2%) Great story. Net interest income up, good loan growth. Fee income generation will be much tougher. Not trading at a huge multiple of 11x earnings. Will see dividend increases and share buybacks. Good buy here. Yield about 2%.

(A Top Pick Apr 06/21, Up 25%) Cybersecurity is a big secular growth area. Lots of pressure to make sure telecommunications are secure, especially as people work remotely. He'd buy it here.