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

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.

Small or Micro Cap and Tech Analysis: Support and resistance levels are a lot less important. In a small cap you are buying the news.

REITS: Tend to well March to July and Now until end of year.

Market: October 26 is the date to get into the market for a Santa Clause rally according to seasonal investing. If you invested for the best 6 months of the year since 1950, $10k would be worth a million. If you invested since 1950 for the other 6 months of the year you would loose $4k. There is some truth to buy when it snows and sell when it goes.

Market: He is taking a hard long look at China. They are they key to this whole equation. He is not that concerned with it. Market has caught up with data that shows they are slowing. 9% is all we need. He is careful with banks. There are lots of issues that could easily fall off the rails. Has had good performance in his dividend paying portfolios. They have been solid as a rock and are a safe haven.

Market: Valuations in some case look tremendous. You have to overlay the dicey macro overlook in Europe and get a comfort value. Enough agreement in Eu that we don’t get a banking credit crisis tomorrow like 2008. He has a lot of cash he would like to spend over the next little while. 20% of equity model is cash.

Market: He is now advising funds. Started opportunity fund. He believes gold is going back into record territory.

Market: Thought he saw a significant low in October 4-5 indicating a late year rally. It is not necessarily being lead by cyclical stocks, but rather by more defensive stocks. Valuations got so beaten up that money is working its way back into equities. Thinks we are at a near term bottom. But he thinks it will continue to be sloppy next year. Work toward yield and more defensive sectors. Focuses on market leadership. 25% pipelines and energy infrastructure, then the rest in real state, pharma, quick service restaurants and technology. Needs defensible revenue lines.

Markets. Stock market is looking more optimistically on what is happening in Europe and China than what the bond market is. Historically, the bond market gets it right more than the stock market. There is probably more Hope than Reality in the market.

Market: There was such an extreme level of pessimism it was hard to find anyone who had anything good to say back in September. Thinks we are off the bottom a little bit. It feels like a recession, but we priced in a very negative outlook. Sees this rally having legs. Best thing about CAT results was the positive view for 23012. It is a proxy for the global situation. He is doing some buying. He doesn’t need dividends, but he looks at ROE.

REITs. Structurally people are shifting away from investing for growth to investing for income to fund their retirements. This is accelerated with interest rates being low. Aconomic growth is pretty anaemic for most of the developed nations.