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

Pair trading. If a trade happens to go against him by 15% (stoploss), he will exit both sides of the trade even if one side is working for him. The idea is to isolate the Beta from the Alpha

International bond market. There were big moves in these last year so there is not a lot of value left. If you want to play this, you have to play through a fund or through an ETF but don't try to do it yourself.

Small caps. You don't need to own these right now, as a lot of the large caps are just as cheap. Have been through the problems and generated earnings and cash flow and have lots of cash and are very cheap.

US$ and Gold? Right now it is popular to bet against the US$. But it's the only place to go when you are scared. Over 5-10 years, the structure of the US the dollar will continue to go down. Short term it will bounce all over the place.

US banks. This is not the time to be getting into US banks. Wouldn't touch them with a 10-foot pole. It will take a long while for them to get back.

ETFs. He doesn't do these. They are trading vehicles and you can’t do valuation on them like you can on individual stocks. Commodities have to be rolled over every month.

Equity Markets. US presidential midterm elections have a big impact on equities. Markets tend to go higher during the first half and then a period of uncertainty in the 2nd quarter followed by a significant drop in the 3rd quarter. This tends to be the 4 year low in the presidential cycle.

Technology stocks. The time to get out is mid to late January. The last of the good news in the technology sector is when the Las Vegas Consumer Electronics Show is over until probably next fall.

Seasonal Plays. Energy usually starts coming in at about this time of year. Materials e.g. base metals do very well at this time. Platinum also does very well at this time. (See Top Picks.)

Precious metals. Gold normally runs from the second week of July to the first week of January. However don't give up on precious metals, because silver and platinum do very well around this time.

Gold. Gold is a currency play more so than an inflation play. If you're going to be in gold, have 5%-10% weighting in your portfolio as a hedge to make it worth your while.

Last year it was about survival and this year it is about investing 101. Refining: Consumption has dropped. There was over capacity for a long time. Now there is a contraction in the capacity. You are supposed to invest in it when times are terrible and get out when it looks good. Natural Gas: It’s a north American commodity and will continue to trade in this range. A number of wells were drilled and then capped at $3 but this winter at $6 they will use them. Uranium. It’s tough to play. It’s such a tight, small market.

(Top Pick Feb 10/09, Up 33%) Sherritt Bonds 7.75% 2015. Chose it because you expect 8% long term in the stock market and if you can get it in a bond then do it. No matter what happened, you were going to make money.

(Top Pick Feb 10/09, Up 119%) Pacific Rubiales 8% 2013 bonds. No matter what happened, you were going to make money.

Canadian housing. Are we looking at a price break down when interest rates rise? He doesn't think so as we didn't move up like the US market did. Theirs went up on aggressive financing and aggressive financing techniques. Also doesn't think interest rates are rising very soon or very much.