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

Real Return Bonds. The coupons on these are based off the inflation rate. His view is that inflation is not a problem so this is probably not the best place to invest in fixed income assets right now.

Hedge Fund Industry. Following the Bernie Madoff situation there is a great movement underway to tighten up regulations in reporting. Also a greater amount of transparency.

Hedge Funds. These are designed to produce positive returns no matter what the general markets are doing. They can also aim for outsize returns based on a macro outlook.

Trident Global Opportunities fund. Has done well taking a bearish approach to the US economy. Their protection in the event of a down side is very solidly in place. Have a lot of cash.

Picton Mahoney Cdn Market Neutral. Great idea in terms of a conservative and consistent end of the spectrum. They are navigating Canadian equities with next to zero correlation compared with the market. Opposite of indexes. Use Longs and Shorts. Made money through 2008 and are still making money.

Polar Securities Altairis US Long/Short. No US$ risks. Will rarely buy commodities or financials. Have had positive returns over 12 years.

Man AHL Diversified. British based. Have been running this for about 10 years with fantastic success. Make directional calls on different commodities and indexes. Their skill set lies in following trends.

Bonds. Mid-to long-term (10-30 year) bond rates have run substantially higher, which means bond prices have plummeted. Looks like it may be starting again. If there is a continuation of rising interest rates, investors in bonds and bond funds could suffer a significant amount of loss on their capital. iShares Canadian Long Bond ETF (XLB-T) would be a good one to use.

Trading Up. Buy the top performing stocks based on a growing divergence between the best performers and the rest of the market. Throughout history the strongest stocks have been the ones that continued to hit new highs and made the most money.

Pair Trading. Go Long the stronger companies and Short the weaker companies in the same sector. Money managers will be selling off their laggards and move their money into the strong companies. This can be a dangerous thing in a Bull market.

3-Trade Strategy. If a stock breaks down 5%-10% below what you paid, Sell to protect your capital. If you like the stock his strategy is to have a stoploss with a Buy below the stoploss. Example $20 stock and a $19 stoploss but have a Buy order at $15.

Buy Winners coming out of Bases or Consolidations. There is no money in a Basing pattern. The longer it goes and the deeper it is there are a lot of shareholders that are not happy. As it tries to recover their going to try and sell.

Sell Strategy. Sell when the stock undercuts the uptrend. This fabulous market is not going to last forever and we are getting late in the cycle. The bottom of a trend channel is the 50-day moving average. If it undercuts that is your Sell signal.

Canadian banks. Have had a huge run and expects they will trade in a range for a bit. Will probably experience some losses on their loan portfolios but long-term the banks are phenomenal.

Canada Real Return Bond Dec 2021. This is an asset with pure inflation protection. Unlike regular bonds, real return bonds pay an interest rate that is adjusted for inflation.