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

Oil Sands: - One of the last open ended sources of oil reserves on the planet. Nothing has happened which is quite surprising. The cost of development has escalated tremendously.

US Recession: - Has concerns about the US consumer in 2007. David Dodge, Governor of the Bank of Canada is concerned about this as well as a global recession.

Financials: - Out of these completely. In Canada, they are very, very expensive and offer no value at all. A long look back at bear markets, banks often suffer severe setbacks. He is waiting for a setback so he can get back into them.

US Health Care/Pharma: - Looks like they are bouncing quite nicely. Some good value has really come into the sector.

E.T.F.’s: - Doesn’t believe in indexing at all. It breeds mediocrity.

Shorting Stocks: - Can't use shorts because he is not running a hedge fund and it is not his mandate.

Gold: - Not a gold player. Gold is a function of the US$ and is going to act like a thermometer.

Gold: - There are 3 potential buyers of gold. Central banks, and they are not buying. Investors, and they are buying like crazy. Commercial users and demand here has gone down badly. Currently, it is investors who are selling to one another and that's a very poor technical condition to be in.

Shorting Stocks: - Not shorting, but is pretty close to doing so.

E.T.F.’s: - Uses them the odd time if he wants to rapidly increase his exposure to the market. It's not particularly cheap.

Metals: - We are in a period where everyone has lost their confidence and there is a fear factor. He does own a few metals. Believes in it, but what has changed is the psychology.

Metals: - Feels there is a lot of professional investing, such as pension funds, in this sector which makes him nervous. When you get speculators, instead of users you get volatile and unknown kinds of markets.

Commodities: - Long term, the emergence of the far east is going to have a profound effect. Short term he is bearish because of over speculation but long-term bullish.

Auto Sector: - A possible Chapter 11 in the making for both Ford (F-N) and General Motors (GM-N). They have to get rid of their pension and medical liabilities.

Auto Sector: - Owns General Motors (GM-N). They are making a lot of tough decisions and getting their act together.