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

Energy sector: -There is a lot of value in the energy sector, but the market doesn't care right now and he thinks that will continue. There will be a magnificent buying opportunity coming, but it is not today.

Income trusts: - Too early. The problem with the trusts is that too many of them are junior stocks. In recessions and down markets, junior stocks get ravaged.

US large cap for safety: - A frightening idea. A lot of the US large cap companies have a tremendous amount of downside, especially the financial sector.

Energy sector: -There is absolutely value in this sector. There will be many more mergers/acquisitions taking place, particularly from the trust side.

Income trusts: - Likes to buy these when they are undervalued. Has a number of these. Likes to see 35/40% upside available, not including distributions.

Oil Sands: - Owns nothing in the oil sands. Prefers companies that have cash flow and earnings. In terms of the feeding frenzy to get into the tar sands, he’s not there.

US Recession: - Doesn’t see a recession, only a slowdown. Lower gasoline prices is helping the consumer. A chicken little scenario.

Financials: - Has no bank stocks or Canadian insurance companies. However, US life companies are dirt-cheap. He is able to buy them well below book and break-up value.

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.