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

Announcement on pay structure for those US banks that didn’t give the money back seems to be the cause of what happened in the market today. This is going to affect 7 companies so it won’t have a long lasting affect. Financial is an area he is underweight in. Technology has been running and is one of the sectors he is most overweight in. Doesn’t know if there is a correction on the horizon. Companies are going to have to earn their gains from here.

Apple outdid themselves this time. There is a sweet spot in spending on the ipods and so on. The second and third quarter earnings came out ahead of expectations. He is still overweight gold.

Thinks the US$ will go lower so commodities will go up. But there will be a rally if there is more trouble in the middle east or the economy rebounds in the US. If we have a very cold winter we may have some increase in Nat Gas prices, otherwise a retreat.

Nat Gas: If you have a normal winter we will still have excess capacity at the end of it.

The US economy has rebounded from the abyss, but we are not out of the woods. Housing starts are below normal levels. Things are going to get better rather than worse going forward. Increases in interest rates will not happen until there are definite signs of the economy having rebounded. There will not be raising of rates in the short term in Canada. 2008 was a great year for government bonds. This year is a great year for corporate rates. You could see rates raise in 9-12 months. Now would not be a time to buy bonds significantly. BEARISH IN BONDS

Dynamic High Yield Bind Fund: High Yield tracks equity markets as apposed to bond markets. Had a good rally already. The outlook is very good right now.

Australian dollar EIB 2013 6%. Now 4.99%. Exposes you to swings in the Australia Dollar. It’s ok if you want to take some currency risk.

Government of Canada 1.25% Due Dec/11. Don’t like the market, buy it yields more than money market. You might want to park your money here and it is easy to flip out of it. Safe Bet.

(Top pick June 24/09, Up 3.93%) City of Toronto Bond

(Top Pick June 24/09, up 2.6%) Telus 4.95%

(Top Pick June 24/09, Up 5.1%) Bank Rate Reset Pfd.

(Top Pick June 24/09, Up 5.1%) Bank Rate Reset Pfd.

Australian dollar EIB 2013 6%. Now 4.99%. Exposes you to swings in the Australia Dollar. It’s ok if you want to take some currency risk.

Thinks we wont get a correction. Spent a lot of time monitoring the health of market. Liquidity in the market is fueling prices higher. Essentially a 0% return on cash. Not seeing any deterioration in the breadth models they are using. Looks like US$ could go lower.

US$ as an investment: It’s tough to pick a bottom. He would need to see sectors that benefit from a weak dollar would have to under perform. He hedges his US$ investments.