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Market. Stress in the US housing market. He presented a graph of the percentage of households who own homes and pay more than half of their household income to mortgage costs. The last peak in 08/09 had 17% doing that and now it is 23%. So this is a sign that leverage is a problem, even if we have low interest rates. However the credit core back then was better than it is today. This is another reason why interest rates cannot go up.

Canadian Banks. [Caller needed money soon]. Having a major use of the money in a year from now you should SELL, SELL, SELL, NOW. In the next recession Canadian banks will fall at least 30%. See his educational segment.

Broad exposure to the best dividend payers in Canada. It is a great sector but he thinks we are going into a global slowdown. The resistance level is problem well below the January lows. $16 is probably the bottom. ZWU-T would probably perform a little bit better.

Sleep at night dividend portfolio. Alternatively ZMI-T is a balanced yield product that owns half fixed income and the rest is in dividend stocks. It is more defensive. SPYD-N is the high US dividend payers index. ZDY-T would give you a similar ride and he would prefer that.

The biggest public amusement park operator apart from Disney. He suspects this will under-perform. He does not think this will perform well despite analysts' expectations as we are heading into a recession. (Analysts’ price target is $58.00)

Emerging markets issue bonds in local currencies or in US dollars. This one is local currency bonds. Since the FED has stopped increasing interest rates, then currencies should strengthen rather than weaken. You probably have 10% downside with a yield of 6.25% plus 2-3% on the currency side. He likes this in the fixed income world. It is his favourite play and is a big position in all his portfolios.

X-dividend date coming up. After the next economic downturn, this will be a sector to invest in and forget it for a decade. At this point he does not see it goes above the recent highs. Don't invest in it now. You might trade it.

Utilities sector in the US. It is more correlated with interest rates and when they fall this is good for the sector. He does not like it on a risk/reward basis. It is expensive right now. If stocks collapse, then this will be the safest sector to invest in and generate a yield.

Educational Segment. The invested yield curve and is a recession coming? Germany forced interest rates negative recently. Banks borrow short and lend long and the spread is the profit. When funding rates go higher than lending rates, banks lend less because they make less money. At this point corporations pay down debt. There is an index out of New York that measures the likelihood of recession and this is peaking up. In '80/'09 long term rates in the US went above the short term rates for 18 months before the recession actually started. They stayed inverted 6 to 12 months before the Fed started bringing rates back. At this point, credit will contract. People are trying to buy longer term rates. The economy is shrinking. The economy shrinking will happen because of trade wars. He is as defensive as possible at this point. He is in capital preservation mode for the next couple of years.

Market. The inversion of the yield curve tells you only ONE thing and that is that there WILL be a recession, but it does not tell you WHEN it will be. A recession is like death and taxes – it will happen, but when? Some of the best returns in the market are between inversion of the curve and when the economic ACTUALLY goes into recession. He will be watching carefully. He can't tell you if it is 12 or 36 months to recession. If businesses have access to credit then the economy can grow. Utilities had shrinkage of 5% in EPS last year but were one of the best performing sectors. People bought the ETFs because they thought they were defensive. Today the utilities are so expensive that it is pointless to be involved.

They are getting things right. It went sideways for 6-7 years while revenues were growing. Margins remained resilient except for one year. They had the wrong assortment that year. They understand what's in inventory, on order and they have a best in class on-line sales and they have a strong directly owned store network. They reached a point where same store sales started to grow and earnings started to grow. They are just executing very well right now. Competitors have had limited success.

People get confused because they control the Candu reactor technology. It is a very small part of their revenue base. They also supply nuclear reactors to the US military for subs and so on. He sold because they took an order for pressure valves and they had quality issues needing rework. It now lacks a catalyst unless sub production increases. There are better investment opportunities elsewhere.

He likes the company. It is one of the better components of the financial industry in the US right now. Casualty insurance has been rated a market-perform recently. He thinks there is a hard pricing in personal lines. It is a conservative business. They can raise prices every 12 months. There are three big players. These guys have the lowest cost. They are well positioned.

Resources: He is zero weighted right now.

They make FPGAs. Programmable logic devices. It is a blank sleight over which you can create logic. It was originally a military technology. This is the only company left in this field. Military projects are classified. This technology will probably remain for some time. The market is rightly rewarding this company for being well positioned.