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

Mrk Vectors Gold Miners ETF (GDX-N) Versus BMO Junior Gold Index ETF (ZJG-T)? Junior Gold is fine as it gives a little more diversification. He would like to have a look at the holdings on the GDX-N as he thinks they will be the same as in the iShares S&P/TSX Global Gold (XGD-T) and you wouldn't have to worry about currency.

(A Top Pick Nov 10/09. Up 9.5%.) Canada Real Return Bond Dec 2021. This was his inflation hedge but has done so well because bond yields have dropped. Will probably trim his position.

Canadian telcos. Generating oodles of free cash flow. Smart phone growth is picking up at a tremendous rate giving them extra revenues and extra profits to their bottom lines. Smart phone penetration is still only 20% in North America and expects it to double in the next couple of years.

Market. He is looking for a 5% correction in the market.

Natural gas. Currently we are reaching a peak in terms of pessimism. An opportunity to get invested in high-quality natural gas stocks. Might not be at the bottom but it is certainly coming. Forward future strip has been coming down and you have to go out to about 2015 to find prices above $6. In a seasonal trough where we are maximizing storage.

Oil. Some technicians are calling for oil to weaken to $60 or maybe even $55 this fall. He'll wait to see if this plays out. When he sees oil getting up to $85, he lightens up but when it gets down to high $60's or low $70's, he starts to chip away at names he likes.

Natural Gas: Would all trucks end up running on Natural Gas? Would be at least 10 year to establish the infrastructure and regulatory system.

The world is very concerned about the numbers out of the US and out of China. There’s a lot of concern about growth globally. This is the opportunity to pick away at the better quality names. The talk of double dip is overblown. You need negative data to get into double dip territory. The FED can print money.

(A Top Pick Aug 25/09. Up 16.68%.) Province of Ontario (Australia$) bond maturing 2016 with about a 6.75% yield to maturity. Made money on both currency and the bond itself.

Japan? Strong currency in an exporting nation is not good. Not fairly attractive from a demographic standpoint. Has debt issues and a stagnant economy.

Historically, midterm election year markets go higher in 3rd week of April and tend to move lower until end of September when they bottom. Then go higher for the next 12 months. Expected to be end of October this year because Bush tax cuts are coming off at yearend and a lot of people will want to claim capital gains. Market will be so oversold it will give a classic buying opportunity.

Gold. IMF still has 150 tons of its original form and 50 tons of gold. They are under pressure to get rid of the last 150 and this is overhanging the market and keeping gold from going to an all-time high. If they were to blow out the last 150, look for gold to spike to all-time highs. He has a technical target of $1440 by year-end based on this scenario.

Natural gas. An ugly chart. Just broke a key support this week. Historically it does well the middle of Sept until the end of Dec but it hasn't happened in the last couple of years.

Oil service stocks. The bottom is normally reached around the 3rd week of Nov but the real sweet spot is from end of Jan to around the 1st week in May. You might consider HOLDRs Oil Services (OIH-N) ETF at that time.

Power Financial (PWF-T) or Power Corp (POW-T)? Both have come off a good deal. Power Financial is overwhelmingly Great West Life (GWO-T) and Investors Group (IGM-T). Power Corp has holdings in China, Europe and Quebec so it is a broader holding company. Your choice.