A Comment -- General Comments From an Expert (A Commentary)

The US markets are fully valued, though there are pockets to pick away at. You can buy growth stocks when they dip. However, year-end S&P estimates aren't much more than current levels. The real action remains in the TSX and outside the US which are pretty cheap. He's commodities-based--metals, meterials, and banks all look good. These are still exciting times. If markets sell off on China or lower bond yields, then these are buying opportunities. In the TSX, industrials and commodities (oil and gas) are very cheap and look good. Financials are okay. The CAD is a reflationary trade and has backed off; but maybe late in the year the CAD will come back and encourage foreign investment in Canadian stocks for the first time in a long time. Big tech like Apple and Microsoft report and you have to own them, though Apple is pretty rich. You still need to buy Amazon based on price-to-growth. It's summer, so there are correction fears, but there was one sell-off day last week, followed by four days of rallies. A correction? No. He doesn't see one. Maybe the market won't go up a whole lot, but it won't fall apart.

Chinese tech stocks. Important to distinguish which type of tech stocks. Speculation of regulation will spread to other sectors. This has been largely priced in. Weakness is an opportunity. China will be the largest economy in the world in a few years. Would not expect broad sweeping regulatory changes.

Educational Segment. Gold prices and interest rates are very well connected. We are seeing nominal yields at all time lows. Historically, it is very bullish for yield when real yields are negative. USD is now relative to developed markets, very far down. There are calls for USD to get weaker. There is scope for gold to stay strong. This divergence is bothering him. Still bullish but has cut his position in the last rally. You get more leverage through gold equities like GLD or CGL.

Which is the better semi conductor to get into. Companies that build equipment to manufacture semi conductors are a good choice. They will benefit from China's aspirations to build their own semiconductor industry. The sector has run significantly. He likes Samsung as a manufacturer. It has lagged recently.

FANG Stocks. They have done fairly well in the last year or so. The question is if regulators are going to start breaking up some of these companies like they did telcos. China is doing that with BABA-N. You need to figure out which one to own and what could go wrong and then continue to own it. Don't own too much of any one sector.