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

Oil. Believes in peak oil theory but currently sees oil being range bound between $65-$85 in the short term. Energy and energy consumption is predicated upon global growth and currently there is a lacklustre period of global growth.

Identifying Value companies. Looks for companies with 1) low price earnings multiples 2) low cash flow multiples 3) discount to book or NAV 4) tax loss carry forwards 5) assets.

Global corporate bond funds? Corporate bonds have had a great run and you want to stay with them. Still the most attractive part of the bond market.

Term deposits give you very limited returns. You may have to get out of your comfort zone and at least Buy GIC's and perhaps form a ladder or alternatively a government bond ladder.

Canada Housing Trust bonds? These are fully guaranteed by the government of Canada. If you are a “Buy and Hold” investor, you want to have some money in these.

Real Return Bonds as a long-term hold over 20 years? He would recommend a minimum of 5% in your portfolio. This is the only perfect guarantee you have in Canada of getting some absolute real return on your money.

(A Top Pick June 24/09. Up 11.35%.) City of Toronto 4.95% due June 27/18. Still likes.

Bank of Montreal or Commerce? Which dividend would have the most upside? Feels Bank of Montreal is a better run bank so this is the one he would prefer.

Lots of news. Fed didn’t move on interest rates. Fed is telling market that they are paying attention. Unemployment situation is not getting any better. They are providing liquidity to the markets. They are concerned about a double dip recession. This was comforting to investors. The second half of the recovery will be a lot slower than the first. He is seeing reasonable valuations in Canada. Corporate earnings are coming in much better than expected. Canadian Market is flat year to date, yet dividends are being increased, etc. Fixed income pays almost nothing. Although defensive, commodities are starting to look very attractive.

Good dividend stocks? If you want growth, Crescent Point (CPG-T) is good. BCE (BCE-T), Brookfield Properties (BPO-T), Enbridge (ENB-T) and Telus (T-T) all look pretty good.

Canadian banks? Have had good recoveries since 2008 but are currently fairly valued and trading has been slowing down. Decent dividends. His preference would be Toronto Dominion (TD-T) #1, Canadian Western (CWB-T) or bank of Montreal (BMO-T) #2 and if you are more adventuresome, CIBC (CM-T) as #3.

BMG Bullion Fund. Gives you platinum, silver and gold in equal parts. Relatively low cost. Thinks gold is in too much in the spotlight at times and is being manipulated at times, while platinum and silver tend to be more stable. A way to play inflation, commodities, etc.

Usually it’s low volume, often negative in the summer. A lot of reports coming in. Markets are focused on positive earnings. There are some negative and some positive reports on the economy, jobs etc. It’s any one’s guess. We tend not to see strong moves in the market place this time of the year. He is concerned about drops later on.

Natural gas falls into a strong seasonal trend. Best time to invest is August until Dec 21 st. A drop off occurs because of tax loss selling. Hurricane season – stronger chance of hurricanes this season. This is not a bad pace to be.

You should have 25% of portfolio in bonds and increase during bad times.