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

Markets. Over the next 20 years, emerging markets will be the driving force for world growth. It won't be in a straight line. There will be ups and downs. Right now we are perhaps going into a slight slowing period.

Markets. He has shifted to more defensive holdings with higher incomes. Some pretty grim things are discounted into the market and he doesn't think will happen. General Motors (GM-N) have reported a 20% increase in car sales. We are into a slowdown and Europe is troubling at we have lost sight of the big picture. A Santa Claus rally is a pretty good possibility.

Gold. The 2 names that he likes are Goldcorp (G-T) and Iamgold (IMG-T). Sees growth in Goldcorp. Not accumulating at this time but is considering how badly the equities have done compared to the commodity.

Markets. Between Oct 5th and Oct 12th, the markets are going to get a very important low. If this type of market continues, this means the general population is interested in being in the market at all. The only thing helping the TSX was the gold sector and that also is now having a bit of a problem. We now have to rely on utilities and consumer staples to hold it up.

Which technical indicators do you prefer? His #1 tools are the 40 week and 200 day moving averages. This is aside from point and figure charting. After that, there is no one indicator that he relies on. Different indicators are for different times.

Oil. Sees some near-term weakness. $70-$80 range is appropriate given the fundamentals. You now start to invest in oily companies.

Natural gas. Still bullish on this commodity. Favours it relative to oil, because risk/reward is much better in terms of how much lower it goes. Can see a $6 handle, possibly in the next 12-18 months.

Uranium. Looks like it is a 1-2 year period to sort this all out. The moratorium in China has been lifted. China, India and Russia probably constitute 80% of global reactor builds over the next decade. For longer-term players this is an advantage for a purchase.

Markets. We’re probably halfway through the up leg of a new bull market. Dow theory states that averages must confirm. Dow internally is stronger now than it was on August 8. Fibonacci Retracement on Dow has retracement of about 38% but on TSX it is about 50%.

S&P 500. Chart shows a rebound bull (from the bear) market from the beginning of 2009 up to early 2011. Rebound bulls are sometimes followed by short bears. Current low is around the corrective period of about a year ago and thinks it will find support here.

Copper. Looks like it is heading for a slowdown globally so the price is down significantly and is fairly oversold. Could see a rebound in the short term but the commodity has to base for 6-9 months. Doesn't see $4 for 6 months.

Gold. Thinks it will get back to $1800 fairly soon. With all the issues going on in the world, she doesn't see any quick fixes and monetary policies are going to be very loose. However, it could pull back to $1300 even in an uptrend. In the short term, she would be cautious.

Markets. We are off 7%-10% just in the last month, down more than 20% in Toronto, US, Europe, Japan so we are officially in bear market territory already. The downside from here is probably another 5%-15% so maybe we end up losing a quarter to a third. When the Europeans do their QE2 and maybe when we get QE3 from the US, maybe we’ll get a turnaround.

Precious Metals. Gold fluctuated within a 10% range within 2 weeks of its all-time highs and then dropped 10% from its all-time highs in 2 weeks, 4 times since (?). After each major correction there is a little bit of consolidationand then it moves to set another high.

Silver. Ratio of silver ounces to buy 1 ounce of gold has widened again. Everyone in the metals market is confident this ratio should be going the other way. Silver is highly influenced by the paper silver market (futures) versus spot silver market. Futures market is so over-participated that if all silver futures contracts globally had to be unwound, silver would have to be over $100.