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

If you buy an ETF near the end of the year, some of them distribute capital gains.

Even if you think the market is expensive there are laggards. The market wants to go up. There is a load of money with no return. Reduced cash as it became evident that this rally had legs. Things are still not great south of the border.

Two types of options: ‘Call’, which grant you the right to buy and ‘Put’ options that give you the right to sell a stock. You can loose all the money you paid for the options, but the most you can loose is what you paid for the call option. Everyone should own a collection of stocks. With ETFs that is very easy today.

Do you buy inter-listeds in the US? He we would buy Canadian companies in Canada. You buy them where the stock is principally traded.

When you buy a long-term call option, you pay a higher price for the longer term. He thinks it is a good strategy if you are bullish on the underlying security. Leaps: A call option that has a term longer than 12 months.

Had been predicting M&A in the oil patch. The price for the Harvest deal was the biggest surprise. He is pleased. Other targets are assets of ECA, TLM. Gas prices have been relatively low. He is over weight financials, more so banks than insurance and SNC, BBD, CNR in the industrials. A little overweight in the energy side but a lot of stocks are pushing on the targets for the oils side. They are underweight materials.

Has no idea whether to be a bull or a bear. Right now he can see why people are bullish because there is so much money in the system, but at the same time the problems in the system have not changed (debt). He has quite a bit of money in the market but quite a bit on the sidelines. He’s at about 50/50. He won’t be buying anything until mid-November. He is going to do the regular buying in December when there is tax loss selling plus the year-end bump. Likes the funeral sector. Some of those companies have come back but there have been further consolidations.

Currency: It’s difficult to play the Chinese Yuan, but it is a currency that is going to increase in value.

He uses a GARP style. Opportunities are a bit everywhere. Resource sector will continue to do well as long as growth in Asia continues, especially in the midcap area. In the financial services as people near the retirement age. In tech you have to may attention to RIM- the smart phone market is growing so fast that everyone can be successful.

Announcement on pay structure for those US banks that didn’t give the money back seems to be the cause of what happened in the market today. This is going to affect 7 companies so it won’t have a long lasting affect. Financial is an area he is underweight in. Technology has been running and is one of the sectors he is most overweight in. Doesn’t know if there is a correction on the horizon. Companies are going to have to earn their gains from here.

Apple outdid themselves this time. There is a sweet spot in spending on the ipods and so on. The second and third quarter earnings came out ahead of expectations. He is still overweight gold.

Thinks the US$ will go lower so commodities will go up. But there will be a rally if there is more trouble in the middle east or the economy rebounds in the US. If we have a very cold winter we may have some increase in Nat Gas prices, otherwise a retreat.

Nat Gas: If you have a normal winter we will still have excess capacity at the end of it.

The US economy has rebounded from the abyss, but we are not out of the woods. Housing starts are below normal levels. Things are going to get better rather than worse going forward. Increases in interest rates will not happen until there are definite signs of the economy having rebounded. There will not be raising of rates in the short term in Canada. 2008 was a great year for government bonds. This year is a great year for corporate rates. You could see rates raise in 9-12 months. Now would not be a time to buy bonds significantly. BEARISH IN BONDS

Dynamic High Yield Bind Fund: High Yield tracks equity markets as apposed to bond markets. Had a good rally already. The outlook is very good right now.