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

Uranium. Has not owned in a while. It has to be a patient game. It is one that if you are buying it you will have to wait much longer for the momentum to build. There is a massive shortage of physical resource and so it will continue to pick up but the question is when. Likes U-T.

At some point we are going to see that all that debt in the US cannot be paid back and we will then see a loss of faith, just as we are now in Japan. When this happens, Gold is the ultimate money. The end game within this is that Japan causes the US dollar and market to rise. The next 3 to 5 years will redefine the world we live in.

Markets. Just launched an energy infrastructure fund. There will be a 100 billion spent over the next 5 years in energy infrastructure. Pipelines, mid-streams, oil services, and rail. Differential will narrow with the infrastructure build. Rail stocks are hitting new highs. Oil by rail story does not evaporate if Keystone is approved and built. Producers are looking for alternative transportation because pipelines are a monopoly. CPG built rail terminals themselves.

Markets. We went a quarter century before Japan went up. You had to have a pullback.

In general you can have a bad economy and good stock market performance. They are not that connected. 25% of portfolio in income is normal for 50 year olds.

Monthly Purchase Plans for ETFs. Claymore used to offer one but not aware of it being available through do-it-yourself channels. But Claymore was purchased by black rock. It is a bit awkward to do it.

Tax Strategy for High Income with RIFFs. RIFF income can be split. OAS claw-back kicks in at high $60s. You can then use flow-through shares because that gives you a deduction.

Newborn Child. Investment for college is 17 year time horizon. Low volatility world ETF is a possibility. Suggests stocks for first 9 years and then something more conservative after that.

Assessing value of defined benefit plan as if it were a bond. You ask your employer what a lump sum would be for a settlement. How much do you invest to get this income is the value.

Markets. You have to be careful when the market has been up 80% of the last number of days. There is no weakness to buy on. You have to chase the market higher. He has not been selling either. It is harder and harder to know what the risk is. A lot of Canada is determined by global growth. He is not seeing a lot of growth in the short term. He finds good things to buy in Canada. There is even some things to buy today. We may not get a correction for 4 or 5 months.

Banks. Looks at tech analysis but it is not a key platform. Based on fundamentals. Does not own any Canadian banks. US regional banks have more leverage to US economy improving. He believes Canadian housing has peaked. Prefers West coast US Banks. He is buying some today.

Markets. 23% of junior mining companies on the TSX would run out of cash in 3 months or less. Private equity is starting to move into this however. Private equity has a 5 year time horizon. It is an interesting development. It is interesting that so many are looking at the resource space.

23% of mining companies on venture exchange of 3 months or less of cash. There are 8-9 hundred companies in platinum, silver and gold on TSX Venture. Not all of those companies all scrambling for the same investor dollar are going to make it. With juniors you have financing risk, commodity risk, and management risk. Thinks in the next few years 50% of them will be gone.

Markets. Thinks the timing and sentiment is starting to change. Some major pipeline projects will tend to alleviate some of the bottlenecks. If/when keystone happens it will be a big positive. Keystone should get resolved in late August. Has heard rumours that it could leak over into 2014, though. Differentials in oil prices have narrowed quite nicely. It is now about $8 and he thinks it will narrow to $5 by year-end.

Gas inventories are tracking a little below their 5-year levels and that has been quite positive. We need an exceptionally hot summer from here. We are seeing some switching back from Nat Gas back into coal. The magnitude is not immaterial in the grand scheme of things. His fund is 2/3rds focused on dividend paying stocks and the rest is small cap (with significant cash flow growth) companies that should eventually get taken over by dividend payers.

Markets. Fundamentals in the oil sector are quite negative. New oil production growth in North America is more than global demand growth. Thinks normal seasonal patterns will occur this year. We are now seeing gas inventories build and if they get more than historical then prices could drop $1 for Nat Gas. You may want to take profits in Nat Gas if you are overweight and wait for a buying opportunity.

Money has moved out of the Bond market, and into large cap defensive equities. They are defensive in terms of the volatility of their cash flow, but there comes a time when they are less defensive. He thinks that there are specific stocks that are worth adding to a portfolio. Something that has a strong balance sheet that can survive a slow growth market, but still able to grow if the market improves.

Doesn't see a correction in the near future, and if we do pull back, that represents a buying opportunity