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

Greater Toronto Airport bond due 2027 paying 6.45%. Trading pretty expensively right now so might be an opportunity to take some profits.

Real Return Bonds. Taxes a factor when determining inflation rate? You face taxation every year on implied increase in value on your bonds based on a change in inflation. He recommends these for tax-exempt accounts only. Right now they are very expensive.

(A Top Pick Oct 19/09. Up 1.86%.) Government of Canada 1.25% Due Dec/11.

Gold bullion/Gold equity. Some of the influences for this are a weaker US dollar and Global government concerns. These problems will continue. His clients hold from 5% to 15%.

Oil. Despite the recession and weaker demand, it has held in quite well. This is also influenced by the weaker US$. A fundamental area for a core exposure. Nice to have companies with yields.

Gold. At $1300 an ounce, a lot of lower grade/smaller mines become attractive for acquisitions. Doesn't know whether gold will stay at this price or go higher.

Gold. Has about 15%-18% weighting in gold stocks in his portfolio. Largely in the mid-cap companies and companies that are adding to their resources with production growth and could be takeover targets.

Gold. Looking for a big move on gold, either up $1000 or down $400.

Natural gas. US emissions standards are going to be tightening in 2013 and beyond which will be positive for natural gas. Commodity has not performed so prices may be range bound at the $4-$5 level for the next couple of years. Some stocks you could consider are Daylight (DAY-T) 60/40 natural gas (6% yield) and Crew (CR-T). A pure natural gas would be Encana (ECA-T).

Dividend Re-Investment Plan (DRIP). Good thing to do.

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.