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Market Outlook He likes that the government has stepped in during a time of crisis, but not it is time for transparency. Are taxes going up, will we see cuts in some programs? He thinks taxes will increase as it appears unavoidable at this point. Although Canada is a better financial situation than most countries and interest rates are low to service debt, higher taxes are about the only way to go. The recent market rally is discounting a good outcome of the March 23 lows. Twenty-five percent of the market cap is in five companies. He is shocked at how wide the breadth has been on the recovery. He thinks value is now coming in. He is using a barbell approach -- buying the big 5 and value stocks.

He would be very cautious on GE. The company has been an investment grade company for decades. Today it is a speculative company. You are not buying the GE of old. It is 70% debt to total capital and as a pension deficit of $95 million. Cash flow is unpredictable. They are now starting to sell of their good quality assets. This will reduce future cash flow.

In late-2019 it was getting too expensive. The price simply was running away from the fundamentals. It got to a 40% premium to the market multiple. When he sold it, it was twice the market average multiple.

Citi target of $400? AAPL is a component of their holdings and has been so for 15 years. For years, it was under appreciated. For the past year the multiple has moved to a premium. He thinks this is in anticipation of 5G -- a ground breaking new technology requiring new hardware and software. They are in a prime position to take advantage.

It pays a nice dividend and the company is committed to it. The company is hitting its stride. It made a big acquisition that introduced a new business enterprise, focusing on botox. They have the most successful drug in America -- Humara. This is helping to reduce their dependency on revenue from Humara. He recommends it here. Yield 5%

One of the most successfully companies over several decades. They have struggled over the past couple of years. This does not mean they have lost their touch. Mr. Buffet takes a long term perspective that does not always match quarterly performance measures. If you own it, keep it.

If you are a long term investor, it is more important to have a position than wait for bragging rights. He thinks it is at a sweet spot as its R&D is creating opportunities for the future. In the semi-conductor group they are in a good spot for 5G.

Physical gold? People like gold as a hedge to their core holdings. It has worked reasonably well in the latest days. When he buys gold for client as a small holding of their asset mix, he would buy through an ETF. The thought of holding physical gold brings on the thought of Armageddon. You may not be able to deal with gold under that scenario -- you sure can't eat it! When it comes to owning gold producers, the correlation with gold prices is not great. A lot of those companies are not good at running their operations.

(A Top Pick May 30/19, Up 44%) A contract research organization who partners with major pharma companies for drug testing and clinical testing. This is the second company in this space that has done well for them. He would stick with it.

(A Top Pick May 30/19, Up 28%) He continues to like it. The company dominates the market. It is not trading at massive market multiple. It has a sizable growth outlook, so it warrants the premium. They are monetizing investments of the past.

(A Top Pick May 30/19, Down 1%) They sold in late-April when it was trading at mid-2019 market multiples. It did not seem to warrant that value during the pandemic, so they decided to exit.

An Act in the US back in the early 1980's introduced the end of patents with drugs. Patent expiration opened the door for generics. MRK has become the most successful pharma company and has a big patent coming due soon. He would tend to move towards the bio-pharma space instead.

The company has multiple issues, not the least of which is COVID and how people may change their plans to fly. This overshadows the 737Max issues from before. They have a lot to overcome before they can be a decent multiple for future cash flow. It is more speculative now and he would probably pass now.

A wonderfully innovative company and they have to be. Their success is dependent on people being able to rub shoulders. They are moving towards the pick-up model. They have a world-wide brand that has allowed them to enter into China, where a huge potential exists for new outlets.