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

(Top Pick July 25/06 was Gov’t of Canada 10-yr bonds, yielding 4.4%.) Had expected economies to be substantially weaker.

All 3 Top Picks of Dec 6/05 were not available on North American exchanges, so were not recorded.

5.7% Shaw bonds maturing Mar 12/17 yielding 6.50%. Shaw is continuing to improve its business.

4.5% Telus bonds maturing Mar 3/12 yielding 5.78%. Likes the sector and the company.

3.75% Canadian government bonds maturing Jun 1/09 and yielding 4.59%.

2 year 4 quarters 2010 Bank of Nova Scotia Bond. A senior deposit rated double A. About a 5% yield. Very low volatility.

Bank of Canada. Looking for a 25 basis point hike in July, bringing the overnight rate up to half. With the strong $ and the weakening equity market, they may be on hold for the summer. Maybe do another in the 4th quarter.

Greater Toronto Airport Authority bond. Very stable credit and low volatility. This falls under the infrastructure category, essentially a monopoly type of service. Very little risk of default. Single A rating.

5 year GIC. Doesn’t know that he would like to lock in all of his funds for 5 years. If it’s one part of your portfolio, that’s OK. Try to ladder it with some floating rate money, money market fund or market securities.

Metlife Bond. A Maple Bond. (?) Yields approximately 5%. Very High quality credit. Double A rated. Considered foreign content in the portfolio, but there is not the currency risk.

BCE Bonds. Sold his holdings because he is not sure how the bid process is going to play out.

Income Trusts are trading about 30%-35% over his model prices. In 2 years, they will have a 30% tax levied. so are trading at what their future earnings are.

Henry made comments throughout the show along with Dean Orrico. Henry was more general while Dean dealt with stocks. Henry's comments: Natural gas and crude prices are rising. This is because all the easy exploration and development have been done, and now the hard ones are left, which means you have to have higher prices to justify the work needed to get at the heavy oil, or the oil sands. Significant commitment to upgrading investment, and refineries around the world. The most aggressive investors are the exporting oil companies. The expansions have been underway for a year and a half or two. Thorium will is unlikely to be a uranium replacement for nuclear power. Towards the end of the year, we will see the first application for the first new nuclear power generation plant. This will trigger several more. Canada oil sands are a unique resource in the world oil supply demand picture. Canada's oil sands represent reserves second only to Saudi Arabia. All of their work identified the Canadian oil sand to be the only location in the world where they are forecasting increasing production as far into the future as you can see. It will be the dominant oil producer in the world over the next few decades. Very large ongoing expansion in ethanol production, and more recently a number of smaller bio-diesel facilities being started, thanks to government subsidies. Ethanol is subsidized to about $44 dollars a barrel, (22 locally, 22 as an import duty), Bio-diesel is subsidized as well. In the case of ethanol, the energy required to produce it is more then can be produced by the product. It's a political solution, not a practical one, not sustainable. There is a mandated ethanol amount in the gas in the US. This is forcing a huge push on production of ethanol which has not been reached yet. In a few months, it will zoom past the mandated levels, and there will be a drop in the price of ethanol, (and corn and soybeans) which will reduce the interest in investors for these alternative fuels.

Gold is contrary, so goes up when the market is correcting. Look at na-marketletter.com to see a number of gold stocks that are listed. (Oh look his name is on the site :)

Gold is the worlds worst commodity. Only one with decades worth of supply.