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

When he invests internationally, he looks for a higher rate of return to compensate for the currency risk. He doesn’t hedge.

Market. Seasonally, the market can be a little weak and the correction we have had can present a buying opportunity. Will be volatile for the balance of the summer. He is taking more of a barbell approach with defensive stocks, consumer staples and healthcare along with some of the more cyclical names.

Market. Volatile market and it's all about Europe. Whether it's geopolitical risk in the middle east, the sovereign debt traces in Europe or the US economy. Expect it will be a turbulent several months.

REIT fundamentals in Canada are sound. Well managed companies all across the country. Supply and demand is the best he's seen in his career. Alberta's oil sands are a great asset, and is attracting foreign money. Opportunities are in Alberta. We are under retailed per square footage per person in this country.

Real estate investors tend to value the yield more then they should. View the yield as a bonus, not as part of the value of the company. “Don't get sucked in by yield”

Global growth. Market has been selling off over the last couple of months because of the forecast for the rate of growth/recovery has been ratcheting down. Has been exasperated by the problems in Europe and the fear of what sort of contagion that might have globally. Unemployment still seems to be a problem in the US and have been going further into debt. There have been signs of inflation in Asia and attempts to stem that a little. However, we are managing to skate on side a little.

Markets. In the midst of a stock correction that actually began mid-March. 14-16 weeks is the average for an intermediate correction. Just a normal mid-term correction in the context of an ongoing bull market. You are not going to get a bear during a US election year. The origin of the bull market was in March/09 and a trend line across the lows shows no violation.

Natural Gas. Has been going down for a long time and technically it has stopped doing that. Has broken up through the major downtrend line. He knows it is going to go higher but not when.

Markets. There are a large number of macro factors that are putting pressures on, where normally there is only one. 1) Greece has been downgraded to triple C junk rated, 2) inflation issues in emerging markets and 3) debt ceilings are being reached in the US. There are also housing and unemployment issues in the US. Has gone defensive in the last few months and gone to cash in a number of positions.

Canadian Banks. His favourites are Toronto Dominion (TD-T) and Royal (RY-T). Royal normally trades at a higher multiple and is shrinking to an interesting level. He sees good prospects in retail banking where TD is pushing very hard on growing this in the US.

Shipping Stocks? If you look at the overall freight rates or any name in the industry, it is understandable that you could lose faith. However there are select opportunities but it takes time. You’ll have to be patient. Diana Shipping (DSX-N) is one with practically zero debt and $373 million in cash. They won’t do large-scale acquisitions but will be very selective.

Markets. He wants companies that make more money every year and give some of it back to the shareholders in the form of dividends. If he can Buy them at a reasonable price, he will do so whether the market is going up or going down. Sees some really good entry points emerging from stocks he has been watching.

Strategy, in light of the high Cdn$, of owning large cap US equities, especially those with high paying dividends? As a strategy it works better inside registered plans because of the dividend tax credit and the withholding tax by the US government.

Market. Everyone’s concerned about the soft patch in the economy due to the oil price spiking to $110 and the Japanese supply disruption. Now the Greek fear is now endemic. Also Bernanke scared everyone with his comments on the debt limit problem. Bond market dropped dramatically but Bernanke’s remarks started the bonds to lift as the flight to quality started to take place. Thinks the soft patch is now over and the worst is past.

Corporate Bond Ladder. You take a lump sum of money and divide it into 10 equal pieces and buy a 1-year bond with the first part, a 2-year with the next part, etc until the money is exhausted. You are now diversified by maturity. Also likes to put in different credits in a 1 to 10 year ladder to spread credit risks out. After the first year, you re-invest in a new 10-year bond so you always have something coming due.