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

Split share is partly a covered option write. The other half is along call position. These are misunderstood and have not attracted a log of attention.

Energy. Oil is range bound at about $60-$73. Believes it is still ahead of its fundamentals. Gas prices in the process of bottoming. Start to take profits when oil hits $70. As oil prices pull back down towards $60 that is a good entry point. Watching natural gas very closely for a triple bottom. Gas/Oil ratio historically has been 10 to 1 but currently 20.8 to 1. Don't Buy based on the ratio!

Natural gas. Currently $3.32 and she sees a forward curve of about $6. Before it curve is not that accurate but 1 year from now, a slow time, she could see it at $5.

BNN Show was cancelled due to technical difficulties. Sorry Bill

Market. Recent report indicates corporate insiders have been selling personal shares at a greater pace than any time since the bull market of 2007. Probably on to something and are going by their expectations of the market rather than the bullish outlook of the street analysts. Look to something with minimum downside risks such as utilities.

US$. Very few countries have an interest in the dollar pounded. Global holdings of US debt instruments are very large and the US is so important. Expects the Cdn$ to edge higher while the US$ edges lower but doesn't think there is going to be anything spectacular.

(A Top Pick May 28/08. Up 12%.) GMAC (Canada) 5.1% bond maturing Apr 30/09. Now matured.

Real Return Bonds as a hedge against inflation? Terrific tools for this because the principal and interest rate increases or decreases as there are changes in CPI. Drawback is that the market is dominated by large institutions so are somewhat illiquid and technical in nature. As an asset class they are a little bit expensive. Play these in an ETF or an actively managed bond fund. Buy when inflation expectations are high and vice versa.

Rising interest rates effect on bond funds? Doesn’t expect any signs of inflation until 2011 so you are probably fine for the balance of the year. Things are probably going to get better in 2011 so you should then start to think about reducing your maturity (nothing long), de-emphasize governments, have some high quality corporate credit of around 5 years and also favour provincials.

Greater Toronto Airport bonds 6.5% expiring 2029. That’s a long duration, which will have a negative impact on the price. Keep you duration short on corporate bonds.

Oil stock with dividend for a 3 to 5 year hold? Not many with a dividend but Encana (ECA-T) has a 3.1% yield. You could also focus on an income trust such as Crescent Point (CPG-T) or Arc Energy (AET.UN-T). His preference would be Canadian Natural Resources (CNQ-T) but its dividend is only 0.68%

Natural gas. Storage is pretty high and without a hurricane or other disaster it'll probably be Oct/Nov and a cold winter before it starts to move the price.

Small Caps. They will do okay as long as you are careful and stick with quality companies that are debt free. Overall economic backdrop is still a little mixed but investors en masse have decided the worst is over.

Natural gas. Expects it will double over the next 12 months. Once companies have stopped drilling for a period of time, poor prices are self-fulfilling problem that disappears.

Molybdenum. Has been very strong coming off the bottom. It's all about resurgence of steel demand. The big question is, is this received recovery sustainable. If not it will rollover again.