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

Markets. Coming into a seasonally weak period for commodities, but also people’s confidence has been shaken for the time being. Emerging markets fighting inflation may slow things down too. There has been a very rapid rise in commodity prices in the last year and that as yet has to beat its way through the system in terms of what it might do to inflationary tendencies. Some bargains may show up for prepared investors.

Risks to the market- there are geopolitical risks, so much risk in the middle east and the earth quake, evaluation not cheap but proper, S&P is trading 13 times earning,there is a fear of unknown, liquidity is back, financial system is flushed.

Markets-feels that the rally we have had over the last 2 years is appropriate and that we should see sideways trading, it will be difficult and we won't be seeing any screaming buys, feels we will see a bigger recovery in the fall and next 6-12 months,private sector operating earnings are very good and will eventually feed into the stock market.

Markets-Over the last week there has been a rotation out of commodities and into utilities and stable dividend companies. There could be a another down.

Golds. People are taking a bit of risk off the table. Hardest hit are small cap golds as they have the biggest leverage to the gold price and biggest long term returns, but when the market starts to turn, this sector weakens. Long term, the US looks like it will continue to print money and as long as that continues, it looks like gold is a good place to be.

Markets. Feels Cdn economy will remain strong and sees continuing job creation in Canada. Expects the Majority government will have steady progress in reducing the deficit. Commodity prices have come off but expect to see them continue strong. Lower Cdn$ will be good for corporate earnings. Expecting TSX will stay above $14,000.

REITs? This sector has had a very good run. Good reason to hold them but don’t expect them to do as well as they have done. Hold them for the yield and a bit of appreciation but don’t expect them to outperform the market. Now there will be a race between rising interest rates and their ability to raise rents.

Playing the market defensively. Feels the world has grown a lot and earnings will continue to grow but at a diminishing rate. You won't see economic growth as in the past. It will slow down, but not dramatically.

Printing of US$ versus silver and gold? It's the printing of money and the velocity (movement) of money that is important. Too much velocity (not the printing of money) causes massive inflation. US doesn't have the velocity of money as there is in the rest of the world.

Agriculture. Seasonality is right from the middle of July until the end of the year. The position he owned (MOO-N) went up 50% last year. This is the season when farmers are growing their crops and selling them before the end of the year for taxes. To reduce taxes, they buy fertilizers, tractors, etc. This year is even better because grain prices can go significantly higher.

Cdn$ vs. US$? Cdn$ historically bottoms around the middle of February and then goes strongly on the upside until the end of May. Looks like seasonality is peaking out a little early this year.

(A Top Pick April 30/10. No change.) 5-month Treasury Bills. Looking for markets to go into a corrective phase until probably the fall, so a good place to park your money.

May 2nd was a crucial date in the US market when all the economically sensitive sectors all of a sudden turned out the lights. Then started rolling over and continued moving lower, most noticeably in the materials sector such as silver and gold. Cdn market had a peak on March 7th so have been in a corrective phase for 10 weeks. Be cautious.

Market: We are in a period that will be quite choppy. Not done with the correction in commodities, which will continue to weigh on the markets. For oil there will be some ups and downs but longer term she is very optimistic on oil and as a result optimistic on Canada. Gold will trade along with other commodities and will be volatile. A good hedge against weakness in the US dollar

US$: Rallying strongly against the Euro. You might have expected that given that everyone thinks the US is finished. So much pessimism. Euro has been very strong. However, no one has ever made money counting the US out. Very resilient economy. In the medium to longer term they will manage their way out.