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

Taxation on Trust Income in RRSP and RIFs: - There will be double taxation on trust income going into RRSPs and RIFs and no benefit of dividend tax credits. He has been trying to lobby the government and would ask anybody in this situation to contact his or her Member of Parliament to try and get this changed.

Carbon Capture (CCS): - Capturing carbon dioxide (CO2) from fossil fuel sources (power plants). Regulations around it are reasonably vague but it is such a new industry that the technology is not available. A market that you should be extremely leery of as there could be a lot of hype.

Canadian Banks: - Even though they are a large part of the TSX, there is no hurry to buy these. If you want to be in the financial sector the life insurance companies are a better place to be. (See his top picks.)

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Seasonal Investing: - As a seasonal investor, you would take small investments and rotate through the different sectors of the market. When does oil too well, when does Gold do well, when does technology do well etc.? You end up with a basket of these and you are averaging out over time. If you can get 70%-80% of those trades working, then you will be in the market.

Gold: - Has been a fairly reliable trade every fall. About 70% of gold is consumed by jewellery. India has a Diwali festival, which has a huge consumption of gold. Fabricators start to buy the gold in July, which tends to drive gold up until the end of September. He is a Bull on gold and thinks it will go back above $1000.

Oil: - Trade between Feb 5th and May 9th has been a very reliable time to trade. 23 of the last 25 years has been positive and beaten the market. What is actually happening is that the oil refineries are producing more and more gasoline for the summer driving season. The next opportunity that occurs is basically in July, which is when they refineries are starting to produce oil for the heating season.

Food Companies: - What is happening here is that they are being squeezed and are having difficulty passing on price increases. What you want to see is a good solid name with a lot of Brand in the industry. Food tends to be in the consumer staple industries, which is a good place to be at this time.

Market: - Not sure the market has bottomed yet. Financials: - His computer models are reflecting a serious deterioration in earnings estimates on US financials. Model price has gone substantially below some of the big banks. Huge headwinds going forward, so trade, not Buy, Canadian and US financials. Energy: - Most mispriced sector in the market. There have been substantial increases in earnings estimates in the last 2 weeks. Values, especially Canadian, have not reflected the increases.

Market: - Market is moving higher. Jan/23 climax selloff marked a significant bottom. Went through a bottoming out process that ended March 17. A lot of selling has been done and a lot of companies continue to grow their earnings and sales. Most stocks are recovering. Stay away from financials. Junior resource stocks continue to be in a terrible Bear market. Doesn't know what it will take to get them out, so stick with large caps of over $10 billion market cap trading at least 7 or 8 hundred thousand shares a day.

Canadian Banks: - He is playing the junkier end of the spectrum such as Bank of Montreal (BMO-T) and National Bank (NA-T), the ones where people have over discounted problems. Treat them as trades. (Canadian Imperial (CM-T) has one more shoe to fall. Buy this one on the news.)

Materials: - There is huge non-North American demand for metals and materials. A lot of these stocks are a great buying opportunity. Chart shows an upward trend, which is fairly strong.

Energy: - Energy stocks are a little tricky as they can be subdivided further. You have large caps (which are doing really well) as well as smaller service companies and drillers etc. Chart shows positive results but the larger companies drive this. Some of the smaller companies are bottoming out. Very positive signs. Thinks people shorting oils are going to get burnt.

Canadian Natural Gas: - This market has seen a great run in the last couple of months with prices now close to $11. Still thinks it's under priced relative to European’s Liquefied Natural Gas (LNG). A great area right now for investors to look at. Storage levels and inventories are still low.

Water Sector: - A fantastic area for long-term investors to be looking at for their portfolios. This is a significant area of need. Not water filter or bottling companies, but companies that are creating the water infrastructure and providing fresh water sources to the global population. This will be important for over the next 10 to 15 years.