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

If Keystone pipeline goes through, what resource stocks would benefit? It should impact all heavy oil-light oil producers in Western Canada. It's incredibly important.

Convertible bonds? Doesn’t own them in his portfolio but in a high yield portfolio there is a place for them. It is always to how much yield you are getting, not relative to being funded on a senior basis versus the value of your equity. Not liquid at all.

Why do brokers change the subject from absolute yield to “yield spread” over Treasuries? A bond will change in price with the “all in” yield. “All in” yield is comprised of “risk free” yield (government bond) and “credit premium” (the spread). If yields remain the same but government yields come down 1% and credit spread widen 1%, price will remain the same.

Ford Credit Canada 2015. Hold or Sell? Ford itself is doing the right thing to get back to investment grade. They will probably come back pretty soon. Still attractive from a safety standpoint. The only problem is if the economy is going into a double dip, they will under perform. He's buying through the US now because of the strong Cdn$.

(A Top Pick Aug 19/10. Up 3.56%.) BMW Corp. 3.22% due 3/28/13 bond.

(A Top Pick Aug 19/10. Up 10.12%.) CDP Financial 4.6% due July 2020.

Markets - He has a feeling that the US markets want to rise. Whenever there is some European statistic, it knocks the US down. Feels the Europeans are on their way to trying to sort this out. Heard that the US had junk and fraudulent mortgages. In Europe, you are dealing with real assets.

Strategy of selling an option on a dividend paying stock you own? It's a great idea and he does it all the time. He goes 6 months out. It not only gives you your dividend, but an additional amount. Be aware that it is based on the volatility of the underlying shares.

How do covered call ETFs (ZWSB-T) or (HEX-T) react in a tanking market? The price of these is dependent on the volatility of the underlying security. If you are looking at posted year was out 10%-12%, you are not necessarily going to get these.

Is there an ETF that trades pairs, short and long? Horizon Beta Pro has several of them. This is for the pretty sophisticated investor.

Would the caller be wise in buying an ETF on Brazil at this time? It was you would be better buying a country rather than a BRIC at this time. Brazil is growing very quickly and is probably not a bad place to be.

Buying a 6 months put on a broad market or sector ETF. Good way to protect a portfolio from large downside risk? What sector would retreat the most in a double dip? Would rather Sell options. If you are buying 6 month options, it is costing you a lot of money.

Cash. The amount you hold depends on your risk tolerance. To take advantage of volatile markets, you may want to have 7%-10% in cash.

Market - Holding a lot of cash. Expects people will be selling everything, the good with the bad. There are a number of quality projects that will be available at a discount. We still need to find one big copper mine a year just to keep up with production. On gold we have to find 85 million ounces a year just to match production. Industry can’t keep up with demand, so if you can find a company with a real legitimate discovery, you are set to do well, regardless of the macro stuff.

Rare earths. Major companies are users of rare elements and feels there is a play here. There are 3 deposits that are worth keeping an eye on. Rare Element Resources (RES-T), Quest Rare Minerals (QRM-X) and Tasman (TSM-X). These 3 are advanced enough along that they can kind of see what the metallurgical characteristics are.