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Sentiment that the commodity has to turn around, it has been a very long negative period for the gold stocks. Gold stocks are not a great hedge to stock market correction or recession. The company is not profitable and are paying a dividend. They need higher prices for the dividend to survive. He believes they should not be paying a dividend.

It is at the bottom of their consumer discretionary rankings. Its heyday of actually being a dollar store competitor is behind it. It does not look good on value. It has broke the technicals. He does not see value in this name. He would stay away from this name.

He does not like this name. He is worried about its balance sheet and value. It makes sense to own Tel Co’s in a portfolio, but there are better names to own. It is trading at a 37 X P/E. He does not expect much growth in this name.

He is overweight in both pharmaceuticals and biotechnology. It is nearing a 52 week high. They have continuously raised the dividend. It is a defensive name. There are other names in this sector that he prefers.

He is bullish on banks. He sees it as a good opportunity to buy. It was a screaming technical buy last week. They will generate shareholder value. If you buy TD, you are buying for the US exposure. Can’t really go wrong with any of the Canadian banks.

This is a buy and hold. They are a market disrupter. They are a global presence. They have had 33 straight quarters of 20% growth. The forward P/E is 24X which is very reasonable. Yield = 0% (Analysts’ price target is $1349.36)

He is bullish short term on energy. You want to buy the best names when you think there will be a bounce back. They have integrated assets which allow them some protection. He has a $67 target price. The dividend is very safe and are buying back a tonne of stock. Yield = 3.3%. (Analysts’ price target is $61.11)

This is more of a trade. They beat earnings and have strong technicals. It is trending positive and he likes utilities. Their revenue is very stable. Yield = 4.0% (Analysts’ price target is $47.79)

What’s the problem with the markets? Oil is coming off because of supply/demand. It may not be over yet. Pipeline capacity could support this argument. Oil trading at big discount is the problem, plus environmental issues. Higher interest rates in December. Thinks the Fed will do only 2 next year. Doesn’t think 2020 will be that great, that could be the recession. Could have a rally in the meantime.

What should the Fed do? They’ve kept rates artificially low for a long time. They’re doing a good job. Real problem is they’re raising rates and de-levering at the same time, and there’s no playbook for this. Rates have to normalize because the economy’s doing so well. He’s on the side of the Fed.

A basket of REITs, nothing wrong with it. Issues to think about include rates increasing, which will affect highly levered companies, like real estate. A headwind for all REITs. If you’re OK with that, then real estate should be a 5-8% part of your portfolio.

Good idea to add? Getting monthly dividend income plus income off the option premium. Buying this for the cash flow. This particular product will suffer in a higher interest rate environment. Don’t add now. Instead, buy ZWB, add it to ZWU, and together that’s your portfolio.

What’s the best way to short ETFs? Just buy a put option, to keep it simple. A number of ETFs out there are short, but he wouldn’t do that.

Good time to buy? You can’t time the markets. This particular product is 60 of the biggest TSX companies, and a cross-section of the industries. Should be a core holding and just hold on to it.

If bearish on a company, buy the puts back, short the stock, or wait? Once you’ve sold the put with the obligation to buy, you have to assume you want the stock. But if you’ve changed your mind, just buy it back at a loss, and call it a day. Don’t try to short it. Distance yourself from emotions.