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

Gold is contrary, so goes up when the market is correcting. Look at na-marketletter.com to see a number of gold stocks that are listed. (Oh look his name is on the site :)

Gold is the worlds worst commodity. Only one with decades worth of supply.

A paper currencies have been devalued 50% over the last 3 or 4 years. Think of price of oil and goal. Interest rates will go up, all over the world.

Haven't built any new refineries in North America since 1976. A refinery takes crude oil and makes it into higher valued products, the most important one being gasoline used in transportation. 2/3's of crude oil is turned into gasoline. The "crack spread" has historically been about $4, is now $32, because we are demanding more and more gasoline for transportation. That's why there is so much excitement about refining and why he recommends stocks that have a refining component.

This show isn't about stocks so much as emerging markets, so there isn't much stock information available. An enormous revolution in emerging markets, but not as quantifiable. There is more of a maturity in the markets. Her top 3 favorite countries are Brazil, Thailand (3-5 year basis), and Korea. Is negative on the India economy of late. Inflation there is 6.3% (in Canada it's 2.5%)

On Gold. There are big concerns about the US dollar and how far it can fall. In cases like that there tends to be a rush in to gold. At the present time however the Canadian gold sector is acting poorly, because their fair market value is continuing to fall. This might be due to gold being quoted in US dollars and the margins getting squeezed. It's a bit early to buy gold, but he has one in his top picks.

A caller was asking if that because the Canadian dollar has been running so hard, it might be a good idea to go into bonds to preserve capital. He replies that it's not a bad idea, but don't go too far out with it, because inflation is rearing it's head, and if the States decides to lower it's interest rates who knows what will happen. He says don't go into US bonds, but a 5 year Canadian bond is a good idea.

Canadian dollar is going up. People are buying companies which affects the Canadian dollar. Recognize when it's over. don't predict when it's over.

Our apologies for the site being down. Looks like we're back on track. Thanks for your concerns.

Price of gold, predicts that it will go over one thousand per ounce in a couple of years, based on US weakness.

(A Top Pick June 14/06. Up 2.1% plus coupons.) Government of Canada 2029 bonds. Rate of return has always been about 12%. He loves the fundamentals of the Canadian economy.

Maple Leaf Bonds -Relatively new product. Canadian Government got out of the business of lending because of their surplus. Foreigners can now come into the Canadian bond market. This allows people to diversify their corporate exposure and get a bit of extra spread. Generally a good credit quality.

Long Bonds - He does not invest in Long corporate bonds. BCE is a good example where you just saw the bond depreciated by 20%. Don't ever lend to companies more than 5-7 years. The domain of the long bond should be the Canadian government or government of Ontario.

Uranium - Historically, there have been major discoveries followed by a lot of green pasture (Closeology!). Those companies were able to raise money in the venture capitalist market, but all went to zero. Stay with companies that have proven reserves, good management and near production. If a company only has aerial surveys, you are at least 7 years away.

A sad day today, Jim O'Connell died from cancer on May 3 2007. The vast majority of the experts that Stockchase has reported on, are due to watching Jim O'Connell do his show.