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

Market breadth. Advance/decline line indicates how many stocks are going up and how many are going down. On the NYSE, this has broken through a new high. S&P has not followed yet but he thinks it should follow soon.

When is a volume spike bullish? Technicians like volume if there is a breakout. When a stock is going sideways and makes a sudden move to the upside, they want volume at the beginning of the move.

Short-term laddered government bonds? He is bearish on bonds. Future for long bonds is probably not good. As an investor, shorten the duration. A laddered ETF is sort of doing that.

What books would you recommend for someone to begin understanding stocks? 2 books he would recommend. Technical Analysis Explained by Martin Pring and after that get the Elliott Wave Principle by Frost and Proctor. The latter one is a must read.

What measures help determine whether a breakout has wings? A breakout will usually occurs from a period of congestion. You can also have a breakout from a long base.. The most popular consolidation patterns is a large triangle. You need to see volume on the breakout.

Markets: August is always a quiet month in his business. Europe is on holidays in a big way right now. Tricky situation in Europe. Investors are very nervous. Multiples are around 10x, which is quite cheap. From a corporate point of view things aren’t that bad. He has been buying over the last 3 months. He is trying to upgrade the portfolio during this time. He adds to those names when they sell off. Thinks slowing of Chinese growth is great. It is a soft landing and a landing that was necessary.

Markets. In the near-term, the North American markets are starting to get closer to the overbought level so near-term, there might be a bit of a pause. Have been seesawing upwards since early June. One of the things you might be looking at is a seasonality pattern. Typically August and September tend to be volatile months. In September, over the last 20 years, only half the time the market is up. Two thirds of his portfolios are defensive, lower beta, high dividend stocks. At the same time, he is opportunistic on price weakness of more secular, long-term, solid growth companies for the other 3rd.

Markets: Market is dead and weather is good and that is a good combination. She always trades. It is tough to trade the small caps but you can always trade the large caps. You pick the names you love and if the name sells off, you pick away at it. If there is strength after a report then you peel some off. On a bad day, then you buy it back. Pick a price point and if it hits it then it does and if it doesn’t then it doesn’t. You have themes you like and themes you don’t, not sectors.

Uranium Stocks: Likes Uranium. Japan just started reactivating some of their reactors. One of the largest mines has said they will post-pone expanding the mine and probably because they see slower demand. She sees a balanced market. She doesn’t see forecasted shortages. It will take Japan a wile to reactivate ALL their reactors.

Interest rates. Low rates have never been better and have been a phenomenal period. REIT sector has been able to refinance at lower and lower rates. Yields are great and the risk rate of return is phenomenal. There are a lot of signs that things are gradually improving.

Asset allocation in a REIT portfolio? First of all, you have to be diversified. Then you look for the best names and identify the best management. He is the most swinging is in the US because they are you can get prime downtown New York offices and then you can get apartments. Go for the good ones which will compound your returns.

Valuations of REITs in general using Riocan (REI.UN-T) as an example. Trading at a 43% premium to its NAV, which is pretty high. 4.8% yield has been higher in the past. Are these REITs still worth buying and is this the top of the market? This is back up to the peak it was in 2007, but they have all grown, matured and have better balance sheets than they had before. The question is, for the long-term can it generate interest? Payout ratio is not too bad. They have done a lot to bring their debt down. Very innovative in some of their projects. Wouldn't worry about the NAV.

Markets: Doesn’t even look at the index during the summer. He shorts a few large caps. In he world he sees there is no growth. You have to pick your spots. You need companies that have had problems and are fixing them. You make money if they are small and un-followed. Don’t count on any macro growth. Wait until a stock has [produced tangible improvements to it’s fundamentals before buying.

Junior oil and gas producers: They are very much beaten up, why: Investors are worried they will not raise the money they need to go into production. You have to be careful. You might want to hang on if it is trading for a big discount to its net asset value.