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COMMENT
The markets won't return to last year's highs. He's cautious and conservative according to the metrics he's seen. A mix of negatives and positives. Bearish on commodity prices, but this actually benefits economies because interest rates will stay flat. This is a positive. Wait and see. If things slow down too much, it's a negative. But the sweet spot of low rates is also possible. US-China trade talks resolving will be very positive, removing market uncertainty.
COMMENT
YTD it's done much better than last year. It's more highly valued than, say, Canadian Tire, though DOL is a better stock. People will still shop at DOL; their products are cheap. Introducing credit cards doubled the spend size in shops. A defensive name and they're growing online. To buy this, the multiple must be much lower; this stock needs to be cheaper. Also, there is competition to consider. That said, DOL is selling items for $2, 3, 4 which increases margins.
Consumer Products
COMMENT
Will unethical practices hurt FB? He owned this before. More regulation will effect media companies like Facebook. But FB is so dominant with so much data. So, this is a risk. He thinks the worst data scores are behind them. Growth numbers are great. You know where your ad dollars are going. This comes down to government pressures and possible regulation. He's very cautious about FB. Perhaps take some shares off the table.
Technology
BUY
BCE vs. BNS for dividend growth and a long-term holding He owns both. Two different companies. The view on interest rates is positive for both. BCE: telecoms won't suffer from cord cutting, since they have a stake in streaming as well; and wireless, cable and interest rates are still high in Canada. BNS: just added to his holding; been a poor performer in the past year, but their international exposure is a positive; pays a good dividend; and this is a safe stock. Canadian banks as a whole earn a lot of money, and he doesn't see problems in this sector. BCE is more defensive, but it comes down to which sector you want.
telephone utilities
PAST TOP PICK
(A Top Pick Feb 14/18, Down 9%) Surprised and confounded him. Banks in Canada as well as America took a dive last year. JPM is a one-stop banking shop in the US: commercial banking, investment banking, personal banking. They recently rose their dividend. At the time, interest rates rose, so he though this sector would do quite well. It didn't. He's more positive on US banks vs. Canadian, because of de-regulation there. He's confident in management.
Financial Services
BUY
It's in a great space now, healthcare, given demographics and technology. The lawsuit will linger for a long time, but it's not hugely material. JNJ is a healthcare conglomrerate with consumer, medical devices and pharma divisions. It's like an ETF. A fine healthcare stock. A long-term hold if you can weather volatility surrounding the lawsuit.
biotechnology
pharmaceutical
