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

Gold: - likes it. Has all the various aspects that you want to see in a rising chart.

Uranium: - A long story rather than a short story. Demand for uranium will not take off until the middle of the next decade. Prefers established players in the industry such as Comeco (CCO-T), which has proven reserves in the ground and the ability to bring them to market. Also likes Denison (DML-T) to a lesser extent.

Marketing Strategy: The sectors where he expects to find opportunities are 1) precious metals 2) energy including natural gas, oil and coal 3) healthcare devices 4) agriculture 5) pockets of technology 6) steel and the infrastructure around it as well as iron ore. You have to pick the spots where you are pretty certain they are going to make the money they are expected to.

Bear ETF’s is a very sophisticated approach to protecting your gains. You have to be very knowledgeable and aware of what you are doing. The basic premise of protecting gains is a good one.

Tonight's show was on wine, so nothing to report....BUT....I do want to apologize to lovers of SMALL CAPS. Forgot to do yesterday's SMALL CAPS program so just did it now. The expert was a new one for us, Mark Lackey. Bill

Canadian Banks & Life Insurance: - If you are looking at income investing, banks have been a great place from a yield perspective. These are great companies. Financials and life insurance have great balance sheets. Yields represent very attractive income relative to the bonds. Don't just hold 1 bank or life insurance, but diversify.

Natural Gas: - Last year was a great run in oil prices but there was a strong dichotomy between the price of oil and natural gas. Very cheap commodity right now. LNG is now trading higher than Canadian/US natural gas.

Quite bullish on the alternative energy clean tech space. There are some very good products out there such as PowerShares Bio&Genomeme (PBE-A) and PowerSh Clean Enrgy E.T.F. (PBW-A). He prefers looking at sustainable energy as opposed to just alternative.

Withholding Tax: - Just like any other product, you are going to be subject to withholding tax on ETF's. It is claimed at the level before it even reaches your account. Also, dividend tax credit on foreign investments is lost because it is treated as foreign income.

Security Value versus ETF; - The way an ETF is priced is one of the biggest misconceptions out there. An ETF represents the exact weighted average of the price of all the underlying stocks. The big benefit is the contractual agreement he has with a designated broker/partner who actually trades the ETF all day long, trying to keep the market price and the net asset value as tight as possible within a bid/ask spread.

Markets: - Most important level for markets is the one that we saw in January; the panic low. A selling climax and it is significant. Normally, you get a bounce up and then a test of that low. We are still waiting for the test. If it breaks there with any degree of confidence, it will be bad. Still waiting for the bounce up.

About 33% short and about 60% long so net exposure to the market is about 27%. Now have more large cap companies that are less risky than smaller cap. Making more money on the short positions. Shorts are diversified. Likes the areas that will be affected by the consumer because of a lack of spending, particularly in the US. Canadian banks have not come down very much, except for National and CIBC and he can see more downside if credit problems continue, so he is short Canadian banks.

Uranium:- Prices are running about $75 in the short term and $95 in the long-term. Expect the long-term will come down into the $70's. Outlook for uranium in the long-term is attractive. A lot of countries are looking to use this as an energy source.

Cash: Most of his accounts have 15% to 20% cash and most of them are balanced with bonds. On bonds, you can do better with quality dividend paying stocks, which will give you a comparable or better yield. You also get a tax credit on dividends and they grow over time.

In this particular market, there is no rush to buy anything right now. If you have a lot of cash, that's great, but chip away at things rather than going whole hog into the market.