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

Investing style. His trades are for income. Make sure you have quality companies that can maintain and grow dividends and distributions. Also have strong balance sheets. Choose businesses that are not too cyclical. Buy on dips with the 1st support around the 50-day moving average and 2nd support around the 200-day moving average.

“Sell in May and go away”? 3 worst months for the market are September, February and May so don't sell in May, sell before May. Sectors he would sell would be high beta sectors, the ones that have no dividends and that have moved hard. You want to lock in a profit.

With a strong CDN$, what ETF in foreign markets would be good? If you believe the Cdn$ would continue to strengthen, one of the things you want to look at is an ETF that Hedges back into the Cdn$. This takes currency risk off of the table. If you think the Cdn$ is probably peaking, then don't worry about the currency hedge. There are a number including iShares and Claymore. You can buy the EFA Australia, Asia and the far east, merging markets or S&P 500 from either of these 2 companies.

US stock purchases? This is a great time to spend the valuable currency. This is what a lot of major corporations and institutional investors do.

(A Top Pick Nov 13/09.) Picton Mahoney Cdn Market Neutral. An authentic long/short hedge fund strategy with Canadian allocation, which is expected to give positive returns no matter where the market goes. Still likes.

(A Top Pick Nov 13/09.) Polar Securities Altairis US Long/Short. An authentic long/short hedge fund strategy for US allocation, which is expected to give positive returns no matter where the market goes. This fund is closing on Friday.

(A Top Pick Nov 13/09.) Man AHL Diversified. British based. Have a long history of making money when you least expect it. The fund is designed to follow trends and momentum in currency, equity and bond markets.

Aluminium? Commodities work on cycles than this one has been at the low end for some time. Thinks it will come back around.

Fierra Market Neutral. This is North American equity in a pairs trading strategy.

Picton Mahoney Income Opportunity. In the face of a rising interest-rate economy, this fund has more tools in the bag. They can work dynamically across the fixed income space.

North Pole Multi-Strategy. In a broader macro sense of things, they find opportunities and find arbitrage situations within the Canadian market. (Canada's oldest operating hedge fund.)

Yield curve says interest rates are going up. His fear is that interest rates may rise quicker than expected. His worry is on the supply side, rather than on the inflation side. For dividend paying stocks, the real rate of return will be better than a growth stock. Earnings expectations are looking punchy, 20-25% growth by next year.

Natural gas. Greatly undervalued in terms of fundamentals. Peaked in the US 40 years ago and will inexorably decline long-term. Increasing use and current prices would create 8 billion foot a day and gas prices would have to almost double. Recent shale gas diversion is only about 13% of total gas supply and of that, 60% is Barnett shale that peaked a year ago and is in significant decline.

Oil sands. There is not a wide enough realization yet that we have absolute peaking of world oil production. We are entering a totally new era where there will be a continuing decline of global supplies creating higher prices. Oil sands is the only resource in the world that he forecasts a continuing rise of supply in the future.

Short selling. You don't want to do it on trusts as you will be responsible for the distributions. You could consider gas weighted names such as Compton Petroleum (CMT-T) or Iteration (ITX-T).