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

In recent weeks, the tone has changed. If investors can maintain a time horizon of 2 to 3 years, the market will do quite well for them. Emerging markets are potentially in a valuation bubble. Regulatory risk can move to dampen things. Pessimistic on outlook for emerging markets. Healthcare, utilities present many opportunities, otherwise it is a stock by stock basis.

For a Medium-risk, long-term portfolio he would look at something that is broad based. This would include the iUnits S&P/TSX 60 (XIU-T), S&P 500 $Cdn ETF (XSP-T) and iUnits Short Bond Index (XSB-T). This would be a core position.

BMG Bullion Fund. Open ended mutual fund. Unique in that it is not only gold but is gold, silver and platinum, one-third each.

One shouldn’t expect an aggressive recovery from current levels. The over all growth should stay moderate.

Silver. Should go higher over the next few years. Currently positioned to outperform gold. With the economy continuing to accelerate, industrial commodities are going to be the beneficiary.

Likes Natural gas. A plentiful commodity, but it is in the ground and you have to get it out and it needs a high enough price to convince producers to get it out. Inventories have been coming down significantly. Suspects that over the next 6 months or so gas will go to $7 and even $8-$9 if it gets overdone.

Will all income trusts other than REITs be taxed in 2011? Business trusts, oil and gas trusts, and the infrastructure trusts will all be taxed in 2011. Tax does not apply just to distributable cash, it applies to their taxable income. The actual tax will vary depending on the taxable income they generate. Tax will not apply to REITs as along as they meet the guidelines to be qualified as REITs. Seniors housing and lodging will not quality.

Loves precious metals as he expects a depreciation of paper currencies and moving to a new basket of currencies including gold. There is also a concern about solvency of various nations and the amount of debt they are taking on.

(A Top Pick Jan 29/09.) Investment grade corporate bonds. Not as much spread now so you want to be out of these and looking at other things.

Japan or China and which sector? Japan historically is a cyclical play in the economy so should do well with a reasonable global recovery. If you want to play this, he would suggest doing it through an ETF. You also have to be careful because of the strong Cdn$.

Technology? Likes the tech sector and thinks there are great opportunities. Companies he likes are Microsoft (MSFT-Q) and Cisco (CSCO-Q). He also owns RIM (RIM-T).

(A Top Pick Dec 29/08. Up 134.66%.) Sprott Gold & Precious Minerals fund.

Gold stocks. When the market falls dramatically and gold prices do not change very much, why do gold stocks fall in relation to other stocks? When a market falls dramatically, investors need liquidity so gold stocks just become stocks.

Gold. The peak of $1200 has not been achieved again. There has been a lot of selling. Not bullish on gold.

Canadian banking sector over the next 12 to 36 months? Performed particularly well through the crisis. Doesn't expect dividend increases will be forthcoming for a while. Earnings will be stable. (See Top Picks.)