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

Gold. At $1300 an ounce, a lot of lower grade/smaller mines become attractive for acquisitions. Doesn't know whether gold will stay at this price or go higher.

Gold. Has about 15%-18% weighting in gold stocks in his portfolio. Largely in the mid-cap companies and companies that are adding to their resources with production growth and could be takeover targets.

Gold. Looking for a big move on gold, either up $1000 or down $400.

Natural gas. US emissions standards are going to be tightening in 2013 and beyond which will be positive for natural gas. Commodity has not performed so prices may be range bound at the $4-$5 level for the next couple of years. Some stocks you could consider are Daylight (DAY-T) 60/40 natural gas (6% yield) and Crew (CR-T). A pure natural gas would be Encana (ECA-T).

Dividend Re-Investment Plan (DRIP). Good thing to do.

Market. September and October have been difficult months historically for the stock market. He would argue that you should be buying stocks on a pullback rather than selling them but he isn't expecting a massive pullback.

Canadian banks. Thinks we are on the cusp of some very attractive dividend increases but probably not this calendar year. Banks are attractive because of the natural growth in Canada and they're very well conservatively managed.

Actual bonds, ETFs or bond mutual funds? Depends on whether you are a do-it-yourself and how much money you have. With $20,000 you are better off with an ETF, which gives you a diversified basket. Doing it yourself open you up to a lot of single issue risks.

Bank bonds called Trucs and Cats. What are they? These are hybrid Tier 1 capital bonds. Trucs are issued by RBC Capital Trust and Cats are issued by TD Capital. They have conversion privileges under certain conditions.

Gold. You have to be a little bit wary now, as a lot of the easy money has already been made. Can see gold going up further but won't continue forever.

Natural gas. Great contrarian play however too many companies have large debt loads. Normally goes up approaching winter. Feels there is a home run but can't see exactly where it is.

Market. In a trading range for the time being. Valuations are not expensive. Some economic uncertainties but also some decent economic numbers from manufacturers although Labour and housing are a bit weak. Doesn't expect a double dip recession but sees the economy as slowly grinding higher.

Inverse ETF’s. Basically allow you to go Short the market. He questions why you wouldn't just short it yourself rather than paying fees for an ETF. A painless way of shorting but dangerous because if you don't have the courage to Short yourself, you really shouldn't be buying these.

US taxation. Bush tax cuts are set to expire but because of the current election, he thinks this will be extended. He would be shocked if the Democrats didn't offer that up.

Natural gas. Expects it to be almost a double from here over the next 12-18 months.