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

Intel (INTC-Q), Oracle (ORCL-Q) or Cisco (CSCO-Q)? Each one of these is a market leader in its own category so it would be reasonable to hold all of them.

Top Picks include 3 bonds, short term, medium term and long term. BMW Corp. 3.22% due 3/28/13 bond. (Short Term) Company has a very good product offering. Improving margins. Weak euro favours them.

Top Picks include 3 bonds, short term, medium term and long term. CDP Financial 4.6% due July 2020. (Medium Term) Carries the largest pension fund in Canada.

Medium term Canada Housing Trust bonds? As an alternative to government bonds, it makes sense from a credit risk standpoint. From a valuation standpoint they would prefer provincials, which gives a higher premium and the credit risk is very limited.

Volumes. When the stock is moving up, the volume is generally at the beginning and gradually lightens as the move advances. Then there is a move into a sideways pattern when volume subsides again. If you get a new move up, the volume will increase again.

Oscillator. If you are going to use this, use weekly or monthly charts, not daily. Use 5 weeks minus 15 weeks smoothed by 3. That works the best.

Asset allocation. There are 10 specific S&P sectors. You should own at least 5 distinct separate sectors and no more than a third in any one sector. He would vote for being overweight on Materials and Industrials, Telecom, a little bit of Consumer and would probably pick away at financials but be light on them.

POT is one of the companies he has been asked about on the shows. If you look at the numbers, the debt load, price of potash, he questions the valuation on it. Yet it is based on what people will pay. Both BHP and POT have large debt loads. Interest rates have only one way to go – up. He bought VT. Balance sheets are always critical to contrarians.

Banks: Don’t buy into them now in Canada, but in the states.

Market Timing: He believes in it but takes a lot of bumps because of it. He wants to buy in when the market gets hit, say couple hundred points in a day.

Oil. Believes in peak oil theory but currently sees oil being range bound between $65-$85 in the short term. Energy and energy consumption is predicated upon global growth and currently there is a lacklustre period of global growth.

Identifying Value companies. Looks for companies with 1) low price earnings multiples 2) low cash flow multiples 3) discount to book or NAV 4) tax loss carry forwards 5) assets.

Global corporate bond funds? Corporate bonds have had a great run and you want to stay with them. Still the most attractive part of the bond market.

Term deposits give you very limited returns. You may have to get out of your comfort zone and at least Buy GIC's and perhaps form a ladder or alternatively a government bond ladder.

Canada Housing Trust bonds? These are fully guaranteed by the government of Canada. If you are a “Buy and Hold” investor, you want to have some money in these.