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

The Financials have not bridged to old lows of the summer, despite the financial crisis. Doesn’t think Commodity stocks have finished going down. Most stable place to be is construction and infrastructure. If the Asian markets slow, then oil could go below $80

Income trusts: The bigger cap names are probably going to survive better after the conversion. Everyone who has announced conversion has lost between 15 and 30%. Doesn’t think there is any capital upside at all in these names, but yields should be interesting for next 24 months. He is not adding any weight to this sector and is slowly exiting it.

Getting close to bottom, it’s very dangerous to try to call it. If you buy stocks that are at 10x earnings, even if they go down you’ll be fine a year from now.

Flight to Safety: Go to where you are going to be the safest – Cash, stocks that have good liquidity, are the largest, best run companies, energy utilities - pipelines, mid stream processors, areas that have a good steady cash flow, do not depend on commodity prices.

The Market Decline today is all about energy; it’s not about banks.

Oil: We are in the shoulder and hurricane seasons. There is a reasonable amount of Gulf of Mexico oil not back on production. Although SUVs are being exchanged for hybrids, demand destruction takes quite a while.

Gas likely to go higher with a tougher winter. Storage is average. Gas stocks could make somewhat of a recovery.

We're in or going into a recession

Money Market Finds: They aren’t guaranteed like a bank deposit. Doesn’t believe you are in any real issue in Canada. You are very safe with them.

Top Pick Email Recipients: My apologies. On yesterday's Oilexco (OIL-T) there was a typo. “Can’t see them getting into the 70,000/80,000 the following year.” should have been “Can see them getting into the 70,000/80,000 the following year.” Bill

Gold in the Asian markets: Thinks gold will be a defensive holding through the current crisis. Asia has increasing concerns about the future stance of the US$. How much money is going to have to be printed and will that bail out the strength of the US$ going forward. Once we are through this crisis, they have to monetize the debt, which tends to be inflationary. Asia is a massive holder of US treasuries. Chinese continue to support US treasuries.

Asian/Pacific stocks: looking for more downside but valuations are getting to be quite attractive. Feels this is a part of the world where you want to be. Needs to see less savings and more spending in Asia and more savings and less spending in the US to correct the imbalances. Will make Asia/Pacific an attractive place to be in the next 3 to 4 years. Next 6 months you will have a chance to buy when people start to panic out of them.

India's Banking Industry: Cautious on the short-term. Had a huge economic run. Increased growth by clearing out some bottlenecks but also saw a massive inflow of foreign capital. This capital is starting to leave. India runs a small current account deficit so they have to attract funds from overseas. Have higher inflation than most of the emerging markets. Has a tough 12 months ahead of it.

Gold: Expects volatility will continue although it should strengthen against the US$ and should appreciate over the next 6 to 12 months. Given the international turmoil there will be a move to keeping some money in gold. Expecting some serious inflation down the road.

Clear Channel (USD Bonds): The senior issue used to finance the leveraged buyout of Clear Channel. The syndicate on the bond recently broke, so they resold the bond at $.70 on the $1 giving an 18% yield until maturity. (Not available to most Canadians so you would have to buy into his fund.)