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

US Stocks: Do it with a US currency hedge. Prefers US oil over US gold. Loonie is going to go higher.

US Stocks: Do it with a US currency hedge. Prefers US oil over US gold. Loonie is going to go higher.

Borrowing for Investing purposes when retired: Should have done it 6 months ago, otherwise it is too risky.

How to Play China: Buy a US ETF. His outlook is pretty bullish for quite a while. There is going to be good news and bad news along the way. The economy can’t help but grow. He would suggest Emerging Markets, rather than just China.

Bank Preferred Shares: It was better to own them 6 or 7 months ago. But banks in Canada are the envy of the world. They remain safe and stable.

Bond ETFs. Pay quarterly dividend. You don’t have to worry about your brokerage’s inventory of bonds. With direct ownership of bonds, you need to ladder them, so that they don’t all come due at once, when interest rates may not be that favourable.

Very little doubt that interest rates will go up. The question is when, not if. Central bank will not change rate until next June.

Please note the comments in “Announcements” my son made on the home page but they are very interesting. If you become a member, we will send you Top Picks every day. Also if you have your special stocks entered, then whenever they are mentioned we will send you an email about them as well. If you miss going to the site you still know what is going on. You can also go to the Opinions/Portfolio comments and see the last 100 comments about your stocks. Try it, you’ll like it. Bill

Utilities. Have been lagging the market and have high yields so this would be a good time to buy.

Government of Canada 5.75% bonds due June 1/33. Likes long bonds in Canada because he thinks we are in a deflationary and the yield curve is too steep. Looking for tepid economic growth and yields should come down. Risk/reward is very good.

Economy. We are in a deflationary period as opposed to an inflationary period in the shorter term. Capital utilization is still very low globally. There is no job growth. Now would be the time to invest in bonds.

Gold. Has run up a lot but could potentially go to $1500, but if that happens it will happen very quickly. If you think that is going to happen, the less risky way to play it is GoldCorp (G-T) or Agnico-Eagle (AEM-T). They may not go up as much but won't fall if gold collapses. Small caps will participate more. Alternatively you can own and ETF.

Crude oil. This will trade between $65 and $70. Seems to be a pretty strong barrier at $70.

Interest rates. Australians raised interest rates but doesn't think Canada will do so for at least 2 years.

Greater Toronto Airport Authority bonds. Fantastic business because they charge fees on every airplane that goes out. Highly rated bond but the problem he had was the higher risk for the amount of compensation.