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

US$: Last month has been the biggest move it has ever had in the US$ index. In the short term, he expects there will be a pullback but longer-term trend will be to buy into the weakness.

Oil/gas: We are in the usual shoulder season for both commodities where demand isn't high. Could see this for another month but we are heading into the strong demand period. Expects to see a pickup coming into October.

US$: Economic data is frankly distorted. Be very sceptical about figures you see. The dollar has been on a tear for 2 reasons. The euro is in trouble because of the stagnating economy. Russia's dalliances in Georgia have frightened the people and they have run back to the US$.

Trust Conversion Strategy: If you own energy trusts, you have to look at the ones who will not be paying taxes until 2013, 2014 and 2015. Cull the others. On the business side, unless you have a very clear indication that the company can produce sufficient EBITDA or cash flow to maintain distributions, then look very hard at the potential of capital losses.

Golds: Usually do well at the late stage of any run. Did well through the early part of this year. Market started to come up so profit-taking set in. If there is anything that is going to lead an up leg, it should be industrials. Resources should then follow around late October early November. Golds should have another up leg late this year and early next year.

Russian ETF's: 3 reasons not to invest in Russia are: 1) The venture in Georgia is a concern for NATO and for countries in Central Europe. Cold War? 2) He thinks thugs run Russia. 3) Economy is largely based on commodities, particularly exports of natural gas, oil and gold. Right now, those markets are in flux.

Agricultural Stocks: His timeframe is the next few years. He has a lot of confidence that the agricultural sector is going to do quite well, particularly the fertilizer part.

Integrated oil company is not a bad idea. This could include Shell (SHC-T), Imperial Oil (IMO-T) or Exxon Mobil (XOM-N). Integrateds have the advantage that when oil prices come down, they make more money on the refining.

Energy: Thinks that oil may have based here. OPEC meets September 9 but he doesn't think they will raise production.

Energy: May be a pullback in oil in the next couple of months but is expecting an average of $130 oil next year and maybe even $150 by the end of 2009. Expect there will be a re-focus on energy stocks after a brief period of weakness. There seems to be an upward spike when a large hurricane goes through the Gulf but, as a rule, it is not sustainable.

Gold: There is a bigger story for gold than just the US$. There is physical demand coming out of the emerging nations. Expects the US$ will show some weakness in 2009 and acts as a safe haven in 2010. Looking for gold to be $1000 in 18 months.

US$: Looking at the whole Freddie Fannie issue. There are a lot of financing requirements in the US, so he doesn't think the US$ has found a bottom. On interest rate differential, which usually underpins a currency, the US has far overshot its fundamentals. Expects that gold will go higher and related to that, so will oil.

Bank Preferred Shares: Spreads in the corporate market and what banks have to pay right now are incredibly attractive and preferreds look good. A lot of them have performed quite poorly over the last year as spreads have widened. You get good distribution but not a lot of capital appreciation.

Oil Sector: A most peculiar reaction to recent events. Oil income trusts have been strong and rising on anticipation that oil will recover and payouts will go up. However, the rest of the oil sector has been going down

Asian Growth: Asia will lead global growth and Resource stocks will be the ones to benefit most. A lot of them are quite cheap compared to his fair market value but are in locations you don't want to be in. Lundin Mining (LUN-T) and Uranium One (UUU-T) are 2 of these stocks.