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

Market Outlook US tech is the source of funds for the market over the past five years. The Index is now about 30% tech names. Post the last China-US meeting, when everyone got more comfortable, bond yields have risen again and the pressure has come off global cyclical stocks. If you thought 2020 would be a return to normal for global trade, it may be time to re-enter the prime global stocks again. He still likes Amazon, Google and Apple, but there are other options for growth now. Investment is shifting into value investing again.

European industrial was quite good. There's been a few misses. He feels tech is over sold. There's the political situation happening with Trump, and outlook of low interest rates in Canada and US. He would give a B+ for the market right now. The macro is also changing.

The street is expecting another rate cut. He's not sure if the market really needs it. The Feds probably doesn't want to do it, but there is a lot of pressure from the White House. Without the trade war, he would say that interest rates should be going up. He expects lower interest rates in the US but it would be the last one for a while.

The deadline for Brexit, October 31, created a situation where they got fairly close to an agreement. There's a catch-22 where now, you have to cut a deal and move on. Hopefully they will figure a way forward.

Market. Infrastructure is Industrials, energy and utilities. He has includes any stock that provides an essential daily service like cell towers, data centers, payment processing – names that have high barriers to entry, and are cash flow generators. Also railways, mid-stream energy processors, but no producers. Data centers are quite lucrative once you have them established.

Future of Wind Turbines. For on-shore wind the biggest hurdle is that turbines are getting bigger and soon aviation approvals will be necessary. With off-shore wind you don’t have FFA regulations but you are drilling into seabed with underwater cabling and this is the biggest hurdle to wind. He is very bullish on wind both onshore and offshore.

Big earnings day, Visa beats. Visa, Mastercard are great long-term, secular growth stories. They can fall off if there's a downturn in the economy, but they're fantastic names. Only recently passed 50% worldwide digital transactions, so lots of runway.

Big beat for Intel, top and bottom line. Good numbers, but Texas Instruments did not. So you have to be selective. De-escalation in US-China tariff wars, plus positive start to Q3 earnings have moved us less than 1% away from S&P all-time highs. Doesn't mean there aren't risks on the horizon.

Next move for the Fed? A 90% prediction they'll lower interest rates. Dovish stance is also buoying markets. Trading has been sideways since Q1.

Covered call option on an ETF. Ask what your outlook is. In a flat or falling environment, covered calls tend to do well because you're getting the yield plus the covered call premium. In a rising environment, where underlying stocks are moving higher, you won't get as strong a return as if you held the underlying securities.

Market Outlook He looks at the past 10 years of a stock's price, focusing on stock price is down 33% in the past 52 weeks and trades near 10 year lows. He looks for upside of at least 100%. He does not like to see a company with a lot of debt. His 10 year annualized return is over 20%. He thinks President Trump is toast. The question is does he even make it to the next election -- is he impeached or does he have a stroke. He has bet that he will not be re-elected. This will be great for the markets after a brief period of uncertainty. He is just too much of a loose cannon. The American debt and deficit now though and it will become a big issue going forward.

Gold It has had a good run up to $1500 per oz. He is not sure people should put their money into gold if a recession is upcoming -- it earns no income. He has some gold stocks on his radar, but the thinks the contrarian opportunity has almost played itself out by now.

Clean technology and rare earth? Rare earth minerals come in vogue every few years -- investors get excited then getting burned. He would be wary of this space. He does not have the research to make a great comment.

Junior energy stocks post-election? He thinks Trudeau buying a pipeline for over $4 billion shows his support for the sector. The issue is a new coalition government and having to deal with so many constituencies. There are some good juniors to buy, but be careful of their debt loads. He does not yet have any recommendations for juniors at this time.

Gold--he's a gold bug The gold price will move when the Fed speaks next week. The big picture is the currency reserve--if the system implodes, gold will come back to the fore. Trump wants to kill the US dollar. All debts are in dollars and have to depreciate--and that already started to happen. After a huge run, gold has been sideways around $1,500. The next move up happen when it breaks above $1,550, the last high. He expects the Fed to ease rates again--free money is coming in. Money is losing its value.