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

Sell deep in the money Calls on blue-chip high dividend paying stocks. Good income strategy? Not a good strategy. He always writes options as close to the money as possible. It gives a lot more flexibility and potential gains.

Future for ETF's trading very few shares, sometimes none, on a daily basis? When looking at niche ETF's, it is a problem. You want to keep your portfolio size to a reasonable, understandable level. You don't need to get into the exotic, illiquid stuff.

Cdn Banks using covered calls if you own and naked puts if you don't? He uses covered calls on bank stocks and ETF's. Great way to generate very tax efficient income but your return will depend on the volatility of the equity. Wouldn't be too anxious to write calls right now.

If a stock is below BV, is this a good investment? In certain sectors, BV is very meaningful, but in others it is not. Would not buy a stock just because it is below Book. It is one of the ingredients but not the only one.

Markets. There are lots of opportunities. Was mostly selling in the 1st 6 months of the year and not doing much at all in the summer. Started to buy again in August. Doesn't know where the markets will go from here but there are lots of bargains out there.

Europe. Situation is untenable and is dealing with the financial stability of the world. A political situation trying to solve a financial situation, which is dangerous. Surprised that the markets are treating the situation so nonchalantly. Credit markets are always a good leading indicator. Generally speaking when you finish a crisis, there is some kind of a climax, usually on the upside..

Cash. To be invested in cash and have complete liquidity, you would not be invested in the stock market, which could be a good or bad decision. There is really no place to park your money in the short term and make anything on it.

Precious Metals. Increase in the price of gold has been through the debasement of currency. Looks like the European Union are going to come together with some plan. Expects that the US QE3 will come and there will likely be a slow down in economic growth rate globally. US will likely have a quantitative easing stimulus program, possibly early next year, which will be good for gold and silver.

Market: Just when you thought they were starting to get things together, they decide to take the decision to the people. If Greeks vote to leave Euro, they will have a default and then drive on. This would be uglier than staying with the Eu. It is creating volatility in the markets and for guys like him with cash it could be an opportunity. Countries around the world have austerity programs to reduce debt. We are in for a pretty sluggish time. He is buying companies that got hit badly, e.g. AA-N.

Genworth 5.68, June 2020. Potential risk of going under and yield does not compensate you for it.

Markets. Not changing his strategy in a short rally like this. Problems still exist in the markets have been quite over reactive, both on positive and negative news. Expect we are seeing some profit taking. Expects we'll continue to see volatility in the foreseeable future. For investors in for the longer haul, there should be opportunities opening up.

Market: There are many more sheets to drop in Europe. Getting Europe off the headlines will be great for this market. Lot of dilution in financials, maybe a trade later in the European banks. Added energy, industrials, materials, technology. Weakness in iron ore, meteorological coal.

Market: It is a contagion-off trade. People pressed the panic button and now it is over. The panic is fear overdone. There are a lot of algorithmic traders in this business. Defensive and dividend paying stocks are getting a bit long in the tooth. You want growth-oriented opportunities. He is rotating into growth companies.

Case New Holland Series B 7.875% 2017. Stock has been on fire recently. Take-over chatter. Business is healthy. Earnings outlook will gain momentum in his opinion. You could see ratings upgrade soon.

Market: Always nice when the market is up 300 points. The market was right to rise. When the news isn’t as bad or even good, it is going to go up. There is pent up demand from all walks of life - investors and pension funds. There is no alternative to stocks when bonds are so low. China has tried to soften their economy to 9%. If they have a hard landing, only time will tell.