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

Companies offering the ETF: When you buy the ETF you have no risk of the parent company going bankrupt or being bought out.

Uses consensus earnings to judge stock earnings. In general they get it right. If the analysts are all wrong, they do a relative ranging and the best come to the top. His model prices are not a target price. The composition of the balance sheet goes into the model price including interest rates, earnings consensus, and so on and each night they calculate a model price. Where you make your money is feelings and emotion and they buy on dips.

We are in wonderful shape in the balance sheet area. Q4 last year we went through systemic failure.

Gold: They don’t invest in gold as there is no balance sheet. Golds are falling. Will buy when the stocks get back in their buying range.

American Financials: Trading above their model prices. It’s about the debt. Citi has 360 Billion on their balance sheet. Why should taxpayer pay a penny more? How do we judge a company that accepts such a large amount of cash and then turns around and reports these numbers? This is not an investment, but a warrant. Same for Bank of America. Nationalization is about stockholders getting zero and debt holders taking zero. Run, not walk, away from these securities.

What we have seen over the last two months is a change in the psychology. We are not seeing stocks fall like dominos. People are building some confidence. Thinks manufacturers’ inventories have bottomed out and production will have to resume.

Numbers are suggesting we are still in a little bit of a recession. We expect base building in the near term. You want to see a breakout and volume for the end of cycle.

Going to see a lot of volatility going forward because people don’t know what these stimulus packages are going to do. People are still unsure of the Financials because there are a lot of banks that aren’t Mark to Market. We’ve seen the commodities base. Things will get worse, economically, before they get better. There are a lot of pairs trading these days. Shorting select consumer products and financial companies.

CI Trident Global Opportunities Fund : Fund did not rally when market did over last few years. It is there to make a lot of money if things collapse, as they did last year.

Dynamic Power Hedge Fund: Tough year last year. Performed much better this year than last. Concentrated portfolio.

Man Investments: Haven’t had any down years. Trend followers. Currencies, Oil, Stock indexes. Up or down markets don’t matter to them. Diversifies risk away from long investments.

Picton Mahohey: Shouldn’t matter if the market goes up or down, this one will go up. Zero Beta. Modifies risk in a portfolio.

Front Street Canadian Hedge: Macro Calls, good stock picker, manages risk with cash. His trends and themes are extremely good going forward. Likes agriculture, oil and gas.

Dynamic Contrarian Fund: manager proved himself over the long term to be a good manager. Deep value manager.

Sprott Opportunities Hedge Fund: 5-Year performance of 21%. Good stock picker, not a lot of gold, selectively shorts individual stocks.