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

Why did preferred shares drop in March 2009 but are currently doing just fine? It was just a panic in 2009. Currently it is a different situation. Europe is so far away. Also, we didn't have rate resets, shorter-term preferreds that are usually issued for 5 years. Also interest rates are dropping.

For a 55-year-old retiree, what percent of portfolio should be in bonds? The old rule of thumb is that fixed income should be equal to your age, which would be 55% in this case. You should check with your advisor.

Phillips Hager North High Yield Bond fund. Very well-known bond manager with all kinds of awards. Definitely know what they are doing. Probably has had difficulty over the last 3-6 months with the high-yield market being driven up in yield and down in price.

Claymore Advantage High Yield Bond ETF (XGB-T) and Cdn Corp Bond ETF (XCB-T) for someone starting retirement?. This is definitely a way to do it, but the big question is what the weight should be between government and corporate. You should talk to your advisor. Another option is the DEX Universe Bond ETF (XBB-T). This may not optimize what you are doing in your portfolio as these are passive.

Market. Likes valuations a lot but we have all these macroeconomic issues. As long as the market is going sideways he is not doing anything particularly aggressive on either the Buy or Sell side. He is light on cyclicals and long on growth stocks with good dividend yield.

Canadian banks? Feels the banks are pretty solid. Would be more down on the lifecos and a lot of the large asset managers. You have a lot of good choices. Over time you should be able to get a 12%-13% per annum return.

(A Top Pick Sept 29/10. Up 27%.) Gold Bullion.

Market. Some indications this may be a turning point. Haven't quite broken up through the 50 day moving average on the TSX composite, which is approximately 1250. There is a divergence between US and Canadian markets. One makes a peak where the other doesn’t and vice versa. S&P 500 is breaking up into new territory.50 day moving average on the TSX is at about 12,134 but he would want to see it at 12,200-12,250 before starting to buy.

Natural gas. Chart shows a long decline from 2008 to the present. Probably one of the most volatile commodities that is actively traded. He would avoid this commodity and natural gas stocks.

Natural gas is a bit confusing. He has stayed away from the commodity as much as possible. Sees no fundamental reason why it will be a whole lot better next year. There is still ongoing supply growth in the US.

Oil. A lot of oil weighted projects make sense around $85. He gets worried when he sees it too much ahead of $100. He sees in the $70 range as a good floor.

Recent craziness is up and that is good. If we get increased clarity that EU has a plan to deal with the crisis, that maybe this rally is sustainable. If companies confirm there is continued profit growth that could be a catalyst for stocks to continue going up. Investor confidence has to be restored. Economic data from US confirms we will not go into a double dip. Clients’ cash levels are still relatively high but they have done some buying.

Markets. Since the 3rd week of August we’ve been in deflation. It's not about stocks, but about government policy, especially in Europe but will soon follow in the US. What is hopeful is that there has just been a big uptick in 10 year yields.

There is so much volatility in the global markets. Look through the noise. The non-farm payroll numbers showed some nice stability but some growth. There had to be some follow through bullishness on that news. Europeans are acting vs. reacting but market is pricing in a default so it is not a factor. Numbers out of Europe are not that bad. Seasonally the next two months are usually a rally in the market. Sees a bit of a recovery and a movement upwards. Dividend paying and utilities/REITs have done so well. They are almost a safe haven. He is more neutral on REITs now because they have done so well. Thinks there will be a sector shift out of the interest sensitive stuff.

First Capital reality 5.34% 2013. Extra 2.5 points above Gov’t of Canada. Very good at executing and developing own properties. Investment grade bond. It is hard to find value in the bond market.