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

E.T.F.’s: - Doesn’t believe in indexing at all. It breeds mediocrity.

Shorting Stocks: - Can't use shorts because he is not running a hedge fund and it is not his mandate.

Gold: - Not a gold player. Gold is a function of the US$ and is going to act like a thermometer.

Gold: - There are 3 potential buyers of gold. Central banks, and they are not buying. Investors, and they are buying like crazy. Commercial users and demand here has gone down badly. Currently, it is investors who are selling to one another and that's a very poor technical condition to be in.

Shorting Stocks: - Not shorting, but is pretty close to doing so.

E.T.F.’s: - Uses them the odd time if he wants to rapidly increase his exposure to the market. It's not particularly cheap.

Metals: - We are in a period where everyone has lost their confidence and there is a fear factor. He does own a few metals. Believes in it, but what has changed is the psychology.

Metals: - Feels there is a lot of professional investing, such as pension funds, in this sector which makes him nervous. When you get speculators, instead of users you get volatile and unknown kinds of markets.

Commodities: - Long term, the emergence of the far east is going to have a profound effect. Short term he is bearish because of over speculation but long-term bullish.

Auto Sector: - A possible Chapter 11 in the making for both Ford (F-N) and General Motors (GM-N). They have to get rid of their pension and medical liabilities.

Auto Sector: - Owns General Motors (GM-N). They are making a lot of tough decisions and getting their act together.

Natural Gas: - Everyone is negative on natural gas and prefers oil. This commodity is very levered towards natural disasters and is not politically sensitive like oil. Likes the sector.

Natural Gas: - Has been lightening up on this, although value in these stocks is coming along. There will be a staggering good buying opportunity. A little bit too early.

Averaging Down: - He will average Down on a stock that has dropped but he thinks is still good.

Averaging Down: - Never average Down on a losing position. Don't throw good money after bad. A terrible way to invest.