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

Views have not changed since the spring. He is an optimist. With governments pumping so much liquidity into the system, we saw a market rally. Leverage can take things up and down very quickly. People are resilient. He does not cling to economic data. There are a whole lot of industries that really have not changed. People still use their products. Cautious about opportunities on the debt side. Took profits in the rally.

Calloway Debenture Coupon 10.25%, yielding 7 to 7.5% Apr 14/2014. The company cut their distributions to zero. Exposure is to hospitality and lodging. Would not be surprised if they call it back at par. It would be a speculative buy.

RBC Preferred Shares Series 31. Redeemable in 2012 when it will be $25. As a preferred share that pulled back, he would be holding on. Banks report next week and feels analysts will have to revise their forecasts. These securities are offering more downside protection than ever.

Fairfax 7.35 2018. They have about a billion in cash. Their core business is showing signs of improvement. Underwriting standards are pretty good.

Is there a correlation between heat and market performance. When he was asked to be on today, he said – What a day to be on”: The start of a correction.

Canadian banks are the obviously the best run banks and we have proven that out over the last 24 months. They are reaching their 52-week highs. Starting with Royal and then TD and BNS, would definitely not have a problem adding to portfolio in the long term.

The August series of options expire this Friday so he was doing some Puts today for expected lower prices. He thinks we are within our trading ranges. We had our lows back in March. We aren’t going to have a collapse. Likes financials.

"Options as a Strategic Investment" by Lawrence McMillan. Insight into every possible option strategy. 800 pages so use it like a handbook. “Aggressive Investing” by the host. Montreal exchange is a good link.

What to do when a few days before a covered call expires, it appears it will be exercised but you don’t really want to give up the stock: Go into the options market and re-purchase the position.

Split share is partly a covered option write. The other half is along call position. These are misunderstood and have not attracted a log of attention.

Energy. Oil is range bound at about $60-$73. Believes it is still ahead of its fundamentals. Gas prices in the process of bottoming. Start to take profits when oil hits $70. As oil prices pull back down towards $60 that is a good entry point. Watching natural gas very closely for a triple bottom. Gas/Oil ratio historically has been 10 to 1 but currently 20.8 to 1. Don't Buy based on the ratio!

Natural gas. Currently $3.32 and she sees a forward curve of about $6. Before it curve is not that accurate but 1 year from now, a slow time, she could see it at $5.

BNN Show was cancelled due to technical difficulties. Sorry Bill

Market. Recent report indicates corporate insiders have been selling personal shares at a greater pace than any time since the bull market of 2007. Probably on to something and are going by their expectations of the market rather than the bullish outlook of the street analysts. Look to something with minimum downside risks such as utilities.

US$. Very few countries have an interest in the dollar pounded. Global holdings of US debt instruments are very large and the US is so important. Expects the Cdn$ to edge higher while the US$ edges lower but doesn't think there is going to be anything spectacular.