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

GLD.US- Entry point of $90. This is a pure play. No leverage involved.

ISHARES Aerospace- Not a believer in ISHARES. Would rather pick individual names out there. United Technologies is one of the best in this sector.

330 HK- 70% of business is in Europe. Their costs are in Hong Kong currency, and their revenue is in Euros.

Movement of money- cautious about using book value as a value indicator. In a declining environment when companies are losing money the book value can deteriorate rather quickly.

SI/K8- Like silver much more than gold. There’s a huge physical shortage of silver. There are very few equity plays to invest in silver. Do like this space a lot. Prefers PAN American.

Rumours become reality, LeManns is the next one to be attacked. Thinks we are in serious trouble. Doesn't expect recover in 2008. He's usually very much a bull.

Caller was suggesting that oil's book value is too high and bank book value was at 1.5%, which should signal the time to go back into banks from oil. Peter responded by saying don't trust book value, since in a declining market book value can deteriorate very quickly. He would much rather own a Canadian bank then a US Bank. He is a big believer in commodities. Hard asset is where it's at.

Advice to people is do nothing, panic is wrong, leverage the house is wrong as well. Buy good companies; if you've got a good company it will prevail. Be cautious of anyone that needs money, and be cautious of any concept type of play. It's the wrong type of market for that.

Canadian housing trust 4-year- 100% guaranteed by the government of Canada, thus are AAA securities. Trading 55-60 full basis points higher than the same maturity level government of Canada bonds. Very, very cheap for retail investors to buy.

Bell Canada 4-year bonds- Good maturity and an attractive bond. Yielding about 350 basis points over Canada’s, which makes them 6.35%. Bell is not going to go out of business, so these are very attractive for part of your portfolio. An above average turnover for a company that’s going to stick around.

Harvest energy Bonds, 7.25-year- Trading at very attractive yields to maturity. These are all energy related companies with very strong cash flows/balance sheets. The interest payments of these debentures come before the unit distributions, therefore these bonds are very safe. A very attractive bond to hold until maturity.

Major bank stocks- Far to early to become involved with these stocks. We haven’t seen the tip of the iceberg yet. Dividends aren’t in any particular difficulty. Preferreds are good right now because interest rates are falling, and there are very good quality bonds.

When the American housing market turns around, there will be an avalanche of money going back into equities from the massive pile-up of money in very liquid T-bills. Stocks are getting very, very cheap, so when the catalyst occurs the financials will snap back incredibly fast.

Convertible Bonds- We like a lot of the convertible bonds that were issued by the income trust. They have been left alone and have very good value.

Laddering a Portfolio- A fool-proof strategy, You can beat ¾ of Canada’s professional fund managers by using this approach. It takes the guess-work out of interest rates by spreading your money out. An example of implementing this strategy involves dividing a lump sum of money into 10 pieces, and investing in 1-year through to 10-year bonds. Then as the bonds mature from year to year, continue investing in additional 10 years bonds, so that your portfolio constantly has a 10 year diversity.