COMMENT
There's a divergence between US and world stocks, and the gap has been widening the past year as US stocks decelerate. It's harder to find value in America. Pulling US stocks down is any comment from the Fed and companies reporting weakness. Investors are waiting for something to happen on the US-China trade front, there's bark than bite here. He can't see Trump causing pain for middle-class voters.
SELL
They sell water and gas heaters to the US residential market, but their expansion into China has caused pain with a big drop in Q1 revenues. They're very good managers in a niche market. Trades at 20x earnings, but growth has really softened. Share price is too high. The downside will come from weakening US home sales. Other headwinds: China tariffs. He'd exit here.
COMMENT
A grand slam, though they are facing more competition. He wishes he had bought this. China doesn't use credit cards and rather they use online payments--this is a longterm headwind. But Visa's free cash flow is great. Apple Pay is also coming.
COMMENT
The impact of global warming Climate change will have an impact (flooding), so property casualty companies can raise rates--they can reprice every year. He likes this sector. Climate change will impact these companies, but not negatively.
BUY ON WEAKNESS
A cyclical stock, so wait till it's beaten up. AA is in good shape with strong cash flow and they're a low-cost producer. China has cut back on capacity, so we're close to a turn.
DON'T BUY

It's suffering like Kraft with almost no revenue or earnings growth with a PE of 20. Their brands are not the best.

COMMENT
20-30% of family offices are in private equity, so worth investing in? Yes, it's easier for smaller investors to invest in private equity firms. Large family offices are sophisticated and fee conscious, but it's hard for small investors to understand their fees or what they are buying. Also, so much institutional money is flowing into infrastructure an private equity that it's driving down yields and returns. Warning: the low-hanging fruit has already been picked. These are illiquid investments. If you pay too much for them, it'll be hard to get a return.
COMMENT
The whole drug sector is under pressure, because every country is managing costs, including America. It's a cash flow industry struggling to maintain growth. Revenues are flatlining. But it's a defensive sector with solid, growing dividends, so he's reluctant to sell them.
COMMENT
Emerging market sovereign high-yield bonds Don't buy them Greece is a good example. The rule can suddenly change and it's not worth the extra return. Too risky. Countries are not like companies--they change rules and an investor can't do anything.
DON'T BUY
Trades at a high 25x earnings for a rock-solid group of beverages with decent dividend growth. Overall, it's too pricey for him.
PAST TOP PICK
(A Top Pick May 07/18, Down 8%) US banking has been under pressure, but MS is well-positioned. They're the largest wealth manager in America. It's cheap now.
PAST TOP PICK
(A Top Pick May 07/18, Down 8%) Pays nearly a 6% dividend and are very well-capitalized, benefitting from current oil prices. They're conservative managers; they carry less debt than their peers. RDS invests heavily in renewable energy and that should give them some growth in time.
PAST TOP PICK
(A Top Pick May 07/18, Down 23%) They make electronics. Japanese small-caps got pounded at the end of 2018, but have rebounded sharply, outpacing American stocks. It's trading to a huge discount now, but it's had a wild ride in the past year.
BUY ON WEAKNESS

A struggle--a retailer competing against Amazon yet thriving through quality merchandise. But COST needs a better entry price. Brilliantly run company

BUY
High on his list if he were to buy a car company. Well-capitalized with less debt than most peers. Also has tremendous market share. Trades at 11x earnings pays a 3% dividend. Great for conservative investors. This has outperformed the global car industry for decades.