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

Oil-Believes that the supply of oil will be the biggest problem. Predicts oil may go to 85-90 a year from now.

Business Software-Believes that software growth is up. Companies are improving productivity by adding and upgrading software products. Believes it should continue for the next 6 months.

Energy: - 40% energy in the US and 42% in Canada. His model invests in mispriced assets based on balance sheets, consensus earnings and interest rates.

Interest Rates: - There has been a devaluation in all currencies around the world. His senses that interest rates will go higher and doesn't see any signs of recession. The 2nd largest economy, Japan, just go on line. There is a lot of good things going on.

Energy: - Owns no energy stocks. Global investor and is only looking for investments with the right risk component. It's not about how much you make on the upside but how much you avoid on the downside.

Portfolio Diversification: - You want exposure right across-the-board without taking large bets. He has 30 stocks in his portfolio with only a 3% rating in each and following 3 cardinal rules. 1) Rebalance when a stock exceeds 3%. 2) Dollar cost average if need be. 3) Keep the turnover below 30% to reduce trading costs.

Interest Rates: - Feels that interest rates will stay flat. If there is a slowdown in the 1.5/2% range there will be room to cut rates. Doesn't get really worried until rates go up to 9%, as that is when corporate margins start to disappear. Sees no signs of recession.

Investment Style: - Quantitative investor. Doesn't care about quality of management. Only interested in undervalued companies. Good or bad management will show up on the balance sheet.

Investment Style: - Fundamental value investor. Uses balance sheets, but also looks beyond the numbers to management. Have to consider globalization.

Today's topic was "Bulls versus Bears" and guests included an analyst and a strategist. More and general discussion then selection of stocks so there are no notes for today's noon hour session.

US Recession: - Feels we are heading for a recession, or at least a deflationary period and possibly a depression, but it will be an inflationary depression in the US$ is going to collapse.

Gold % in a Portfolio: - Minimum of 10%. It should be an important component of anybody's portfolio.

Gold % in a Portfolio: - Outside of cash that he has raised this year, all of his investments are in gold.

Gold conspiracy? - US has not had an audit of its gold reserves since the 1950’s. IMF has supported accounting rules that have allowed central banks to double count, so they are complicit in the scheme to keep gold prices down.

Gold conspiracy? - Doesn’t believe in a Gold conspiracy and there is no way to prove that gold price is being manipulated. Even if it was, and he assumed manipulation, that still gives him no predictive capabilities.