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

Australian dollar EIB 2013 6%. Now 4.99%. Exposes you to swings in the Australia Dollar. It’s ok if you want to take some currency risk.

Government of Canada 1.25% Due Dec/11. Don’t like the market, buy it yields more than money market. You might want to park your money here and it is easy to flip out of it. Safe Bet.

(Top pick June 24/09, Up 3.93%) City of Toronto Bond

(Top Pick June 24/09, up 2.6%) Telus 4.95%

(Top Pick June 24/09, Up 5.1%) Bank Rate Reset Pfd.

(Top Pick June 24/09, Up 5.1%) Bank Rate Reset Pfd.

Australian dollar EIB 2013 6%. Now 4.99%. Exposes you to swings in the Australia Dollar. It’s ok if you want to take some currency risk.

Thinks we wont get a correction. Spent a lot of time monitoring the health of market. Liquidity in the market is fueling prices higher. Essentially a 0% return on cash. Not seeing any deterioration in the breadth models they are using. Looks like US$ could go lower.

US$ as an investment: It’s tough to pick a bottom. He would need to see sectors that benefit from a weak dollar would have to under perform. He hedges his US$ investments.

Crude oil. Last $5 increase was driven by the weak US$. As the economy recovers there will be increased demand. Expect it to stay in the $70-$90 range for the next couple of years. At that level, companies have good cash flows.

We have not escaped a market correction. In either direction they overshoot. It is overshooting here. The economy is not coming out in a ‘V’ shape. The market is coming out as if we ARE in a ‘V’ shape. These things always go farther and deeper than you think. The stock and bond markets are saying two different things. The bond market is smarter than the stock market. You might want to take some profits here. He is not buying corporate bonds any more, but into provincial bonds.

Gold: Gold is tied to US dollar and economy. TO look long term – no one knows what is happening there. Gold could do well for a month or 6 months. To play it, guy large cap stocks.

Preferreds vs. Bonds: Preferreds are more attractive outside of an RRSP or RIFF from a tax perspective. Extra risk in that preferreds rank below bonds.

Why not Day Trade: Day trading is not investing but gambling. It’s not the business that he is in.

Hopefully people re-balanced when the prices were low. Now that things have gone up, they need to re-balance again. They may be over weight in equities. People are living a lot older than they used to (90). Ask yourself what you want to do during retirement. Review your portfolio twice per year.