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

Market. September and October have been difficult months historically for the stock market. He would argue that you should be buying stocks on a pullback rather than selling them but he isn't expecting a massive pullback.

Canadian banks. Thinks we are on the cusp of some very attractive dividend increases but probably not this calendar year. Banks are attractive because of the natural growth in Canada and they're very well conservatively managed.

Actual bonds, ETFs or bond mutual funds? Depends on whether you are a do-it-yourself and how much money you have. With $20,000 you are better off with an ETF, which gives you a diversified basket. Doing it yourself open you up to a lot of single issue risks.

Bank bonds called Trucs and Cats. What are they? These are hybrid Tier 1 capital bonds. Trucs are issued by RBC Capital Trust and Cats are issued by TD Capital. They have conversion privileges under certain conditions.

Gold. You have to be a little bit wary now, as a lot of the easy money has already been made. Can see gold going up further but won't continue forever.

Natural gas. Great contrarian play however too many companies have large debt loads. Normally goes up approaching winter. Feels there is a home run but can't see exactly where it is.

Market. In a trading range for the time being. Valuations are not expensive. Some economic uncertainties but also some decent economic numbers from manufacturers although Labour and housing are a bit weak. Doesn't expect a double dip recession but sees the economy as slowly grinding higher.

Inverse ETF’s. Basically allow you to go Short the market. He questions why you wouldn't just short it yourself rather than paying fees for an ETF. A painless way of shorting but dangerous because if you don't have the courage to Short yourself, you really shouldn't be buying these.

US taxation. Bush tax cuts are set to expire but because of the current election, he thinks this will be extended. He would be shocked if the Democrats didn't offer that up.

Natural gas. Expects it to be almost a double from here over the next 12-18 months.

Canadian Banks. Have been in a holding pattern since Dec/08. They are in very good shape. Looking for increases in dividends. Should do better in the coming 12 months. (See Top Picks.)

Reinvesting dividends? He definitely does this, as the 40% of return of dividend is very important.

Hedging US $’s? Currencies fluctuate. There are ways to hedge such as shorting T bills in cross currencies but overall the effects of currencies over a long period of time are rather minimal. He has not hedged as yet.

Investors overly bearish because media tells them of technical patterns such as death crosses, inverse head and shoulders, etc. Wrong kind of things that are totally not there. His charts show oversold conditions, investors’ intelligence statistics and stocks above their own 10-week moving average is as low as in March/09. Investors should prepare so that when the majority discover we are in a Bull market, all the things they buy today will participate.

Market sectors. Gold have been and continue to be very bullish. People are running to consumer staples like Loblaws (L-T). People are also going to dividend stocks such as utilities and pipelines. Energy is the least moving right now.