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

The downturn in oil prices in 1998 came about due to world pressure on the US to remove the embargo on Iraqi oil at the time of the Asian currency crisis. Currently, it would take a major recession in the US to decrease the demand for oil to bring prices down to the low $30’s.

The need to reduce strategic reserves in the US is very remote. The treaty was signed by all the OECD countries and every country is required to maintain certain levels.

Hydrogen - On the basis of current technology, the production of hydrogen requires a great deal of energy, the most direct way being electrical energy to split water into hydrogen and oxygen. Not a very good approach at this time.

Coal to produce liquid fuel - This is a method used by South Africa because they had no oil. The technology has been well demonstrated but is a relatively expensive process. Until the world runs one of cheap, plentiful supplies of natural gas, it probably doesn't make any sense.

2-year U.S. Treasury Note. A bit of a contrary call. Yields about 4.65%. If the Canadian economy and oil/gas continues to slow down, and the CDN$ weakens, this will give you a 6/7% return.

Recommends These Gas Trusts - Progress Energy Trust( PGX-UN), Peyto Energy (PEY-UN), Fairborne Energy Trust (FEL-UN), and Focus Energy (FET-UN). Avoid trusts with high payout ratios, high debt, and high declining gas assets with low reserve life.

Believes money will be in invested in large caps. It is important to have a dverse portfolio. Resource stocks may go down further. Put money into bonds.

Government of Canada- 10 year Bond A portion of your portfolio should be in bonds. It is a great safe place to be.

Global Economy has slowed down. Will pick up in retail. 2/3 GDF is consumer. We are in a commodity cycle.

Qualitites Of A Good Income Trust-It has the ability to increase distrubution over time. low pay out ratio and low debt. (consider foreign exchange as well)

Small and Large Cap Outlook- Small caps have outperformed for the last 7 years. In the next 12-18 months you will see more interest in large cap securities.

Small and Large Caps Outlook-Believes it is large caps time to do a little better but it could still flip-flop. Small caps in the past have outperformed large caps.

Investment Strategy- Diversify your portfolio and stick with quality.(good business plan and good balance). Have a mix with gold and with different sectors represented. It is not the time to take risks.

Investment Strategy-Diversify your portfolio. Watch the proportions of your portfolio. One stock should not be more than 10% of your equity. Sell as the stock goes up to preserve your investment.

Oil-Oil will be very volatile in Sept. and Oct, but is still interesting. Predicts it could be at 65-70 a year from now. Could trade at 50.00 in the short term though.