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

Sectors. His screens are indicating the oil/gas service sector is screening the best. Financials are not looking too bad. Select commodity stocks are there. The rest are special situations that don't fit a theme.

When would you cycle out of financials and what would you use as an alternative? You cycle of of these in the last 3 innings of the UP economic cycle (2013) and he would go more into the consumers’ area with something like Tim Hortons (THI-T) where you would still be maintaining some dividends.

Presidential Election Cycle. So far, it is going pretty well as expected. Markets move higher until April and then from April to June, the markets go lower. Tends to bottom around the end of June and goes higher through until the beginning of September. Usually, after the president has been elected, markets go higher again.

Base metals. This sector looks very interesting. Not so much on the gold sector.

Energy. There has been a very strong move in energy this year. Technicals are lining up for a significant higher move.

Gold. Historically at around this time of year, gold and gold stocks have a difficult time. It's called the PDAC Curse where usually gold stocks in Canada move up higher from the end of December right through until this time of year, just before the PDAC conference. This year, from the end of December to the beginning of this week, TSX gold index is up 13%.

Market. The Dow Jones industrial average, over the last 10 trading days, it gets to 13,000 and then dips down. There is overhead resistance but there is no downside pressure. Basically we are looking at the likelihood of a flat here for a period of time. Maybe when it gets further into March-April, the market will go slightly higher but beware after it gets to the end of April.

Banks. Canadian banks have just entered into a period of seasonal strength. Usually from right around the end of February until the end of May.

Charting. Do you use the same charting for large, mid or small-cap or do you adjust for size? The key for small cap securities is liquidity of the individual securities. However, the smaller sector has a distinct seasonality.

Markets: When you get exposure to BRIC countries you are getting exposure to growth. Europe has been a strategy and is continuing to unwind. If you have exposure to the BRIC you will get growth. Wants companies with good growth prospects, good balance sheets, likes dividends, but they don’t always have them. He likes ADRs, Hong Kong, foreign listings, to get around the Sino forest problem.

Market. Has bounced back in a really good way as it realized the economy is still positive and the worst-case scenario has been avoided. Things are better but we can’t go up at the same pace for the whole year. Looking for some positive correction midyear but, for the year as a whole, the economy is very solid.

Markets. Fundamentals in Europe are not very bright right now, but on the other hand, they are improving in the US. Liquidity situation in Europe has been addressed and won't be a problem for a bit. He is much more positive on the market but is not chasing things. Will be buying on a pullback.

Gold. Dropped to its 50 day moving average, the bottom of the Bollinger band. His long-term outlook is very positive. Can see it testing this year's highs of around $1923 and possibly going up to $2000. If US and European debt issues are not resolved, there will have to be a new world financial system and gold will be a major part. Also, at some point, there will be inflation. His preference would be holding your 1st 5% position in bullion and the 5% or 10% should be Goldcorp (G-T) or one of his Top Picks today.

Last year a big rally in government bond yields, this year it will be corporate bonds, preferred shares. Partly because the economies are getting better, people are feeling safer going into the corporate bonds now.

In a rising interest rate environment, perpetuals are more risky. That's not the case now, as the interest rate is steady.