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

Markets. Expecting Q2, Q3 and Q4 should see a weaker Europe and some earnings revisions as the austerity measures start to take effect.

What sector would you recommend for a young person just starting to build their portfolio? He would suggest buying some good quality dividend paying stocks. Telecom sector has generally performed quite well. Utilities are a little rich right now but as the economy starts to recover a little bit more you might be able to cycle into these as well. Start with something safe that has a good dividend.

Markets. We had a very strong day after 5 days down on S&P 500. There were some favourable comments out of China. There may be some easing in the future. There was a bit of the risk trade back on, which benefits Canada. Think this uptrend will continue, especially if we have lower oil prices, which will eventually translate into lower gasoline prices. Retail sales numbers are decent.

Economy. The US is coming off a great over spending binge so you can't expect the economy to roar ahead at 4%-5% GDP growth. It will take time. Market doesn't like 120,000 new jobs created, but all in all it is positive.

Moving from coal to natural gas? There are 2 types of coal, met that is used in steel production and thermal. In many cases, there has been a conversion of coal plants to natural gas. Doesn't think the future of coal is over.

Nat Gas below $2, first time in a decade. Fracking and Horizontal drilling technology has brought in global reserves that were not formerly part of the global inventory. Companies in this space are not dead money. He focuses on the discovery phase. The producers are negatively impacted, not the explorers.

Global Equity Markets. You have to expect volatility in the coming years because of instability. The last time there was a deleveraging cycle was from 1930 to 1934, when Dow Jones made basically nothing. There were still rallies within that. It will take time. Expectations of 10%-20% returns that we saw in the 80s and 90s aren't going to happen again. Investors have to think about 2%-3% real returns on their equities and it will take a while. It could be another decade of really slow growth.

Optimal equity market for a Canadian investor in non-Canadian equities as a percent of total? For his clients, about a 3rd of their stocks are Canadian, 20% US and the rest are international.

Earnings season is coming up and we want to see what managers are seeing about regional economic outlooks. Alcoa will have a feel for what is going on in the regions but they will not be a bellwether right now because copper is quite low. The commodity stocks have already factored in a slowdown in China. If they continue at 7-8% then things should be ok for resource stocks.

Markets. Down again because of Europe. Concern is on the increasing yields on 10 years for both Italy and Spain. Spain has a majority government right now so it is unlikely that it is going to be the same crisis that we experienced with Greece, but nonetheless, there is concern about Europe and a slowing economy and the potential of other bailouts.

Oil. In spite of the fact that we have some potential for shale oil, it is really not an investable alternative right now. Last August was the highest demand ever recorded. Right now it is a little weak because we have very good inventory numbers but the reality is, that market is shifting East. Demand continues to go up and supply struggles.

Junior oils? Would look to a Bellatrix Exploration (BXE-T), Tourmaline (TOU-T), Painted Pony (PPY.A-X) or Black Pearl (PXX-T). Would look at these, especially if world economic activity picking up.

Markets. A correction is well underway and the TSX is back where it was last fall. Resource stocks are tied into the global economy. If emerging economies are slowing, that pulls resource stocks off. At some point, you are halfway through the bottoming stage.

Markets. Starting to warm up to precious metals. Likes the way the stocks have started to act relative to the commodity. Feels they are in the process of bottoming. Expecting a slow down, first of all in China, which you are already seeing and will likely continue to accelerate down.

Economy. Likely will see quantitative easing later this year. Losses from real estate debt globally are running $40-$50 trillion. A couple of trillion here or there on the Fed’s balance sheet isn't going to make a lot of difference. Growth for the last couple of quarters in the US is very sub-par compared to a more traditional recovery.