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

Gold. Looking for $2,000 or better in the next 2 years and feels that is very conservative.

ETF of small cap gold stocks or US bank like CitiGroup (C-N)? Banks will take time to work out and gold is on a roll right now so an ETF in the shorter term will do better. CitiGroup made lots of money in their investment banking and other businesses but have actually downsized so quality of earnings will probably be better.

Gold. More optimistic on base metals so has shifted some of funds out of gold.

Market has been rising since August but people have now come into a profit-taking mood. Cyclic research suggests that corrections will probably be over by mid-December and then we could go again. We are in a Bull market until possibly Sept 2011 or later.

Gold. Original Point Figure target originally 2, 1,500 and 2000. Then you start looking at how the tempo goes. If it goes slowly and doesn’t reach the point where everybody wants to be there, then you’ll probably go to 2000. At this stage it has been going very steeply and there is a strong possibility that it’ll go to 1500 and not much higher.

Charting. For weekly charts he uses a 10-week and 40-week moving average, not exponential, regular. For a daily chart he uses a 21, 50 and 200. You watch for the crossovers of all the moving averages.

Korea. If the current situation continues and escalates, this will create volatility so you have to pick your spots and look for individual securities. Doesn’t expect oil prices will fluctuate very much.

Oil sands. Likes this area going forward. The oil is economic at between $70 and $80 a barrel. He owns Cenovus (CVE-T).

My apologies. Comments for Market Call Tonight for Nov 22nd was shown as Charles Oliver. This should have been Michael Smedley. Got the wrong tape. My apologies to Michael and my thanks to Colin Morris for pointing this out. I will redo this. Comments will be dated Nov 22 so you won’t get Michaels Top Picks in your e-mail.

From Labour day, markets in the western world have been doing well. Commodities are always really volatile. We are at a point right now where world economies have, at worst, stabilized. The demand now is in commodities. He is not predicating his call on commodities on the US dollar. It is an emerging market thing. For people who have RESPs, you have to put money in by year-end to get the grant for this year.

DRIPs: Caller has planned to use DRIPs on his ETFs until age 71, then cancel them. John Agreed with this strategy.

TFSA: Amount to contribute could increase but would likely be indexed to inflation in increments of $500. If you want to borrow to invest, he will consider it if the client comes to him and wont touch the market for 10 years.

Many ETFs are at their 52-week highs: This means the index or sector is at a 52 week high. Right now pretty well any market in the world is pretty fairly priced.

TSX. $13,300 is your first point of resistance and the next level would be the peak of 2008 of around $15,100-$15,200. There are a few headwinds. GDP is starting to slow down a bit. It won’t rocket to new highs.

Cdn banks. An opportune time to move into them. Not looking for dividend increases from the big 5 until later in 2011 with the exception of Toronto Dominion (TD-T), which might go a bit earlier. Good dividend yields. (See Top Picks.)