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

Market Outlook There may be some chance the US Fed may reduce interest rates. Although nothing has been said directly, recent comments were taken by the market to suggest a cut would be more likely than a rate hike. In the last month, the risk of rising trade war with China has increased. There seems to be a rotation toward defensive stocks. Try not to get distracted by the noise in the market. Now is not the time to bet big on a single investment strategy -- wait to see if growth will continue. Sometimes it is best to do nothing.

Market Outlook - The market has been desperate for positive news. He has never seen the list of worries so clearly documented. We need to position for the positive feedback eventually will arise. We had two big days in the S&P 500. Canada is having a rougher time because of oil correcting. He rejects the idea that what we are living right now is unique and has never happened before. He is positioned for a break out to the upside. Cash levels are low. The value story has been difficult for the last years.

Market Outlook Everything in the economy looks pretty good, there is just uncertainty about trade wars. Auto sales growth seems to slowing, despite lower leasing rates. A peak appears to have happened in the space, but it is not enough to cause a down turn in the market. They are waiting in the wings looking for short term opportunities to buy good long term companies.

A couple of tumultuous days, with upward momentum today. With the decline in interest rates, volatility has to be expected. Going forward, it's important to be diversified. Don't be 100% in equities. Everyone's focusing on the market, but global economy continues to slow down. Populist wave in Europe. Similar to the 1930s economic turmoil. Geopolitical shift driven by Trump, reflecting that the system isn't working anymore. So he's being more conservative with clients' money, positioning for volatility.

Allocation to precious metals. Producers are the better play than physical gold. You'll get leverage from the companies. Standard advice is to have at least 5%. But most investors have none. By having an overweight position, he'll benefit when the light goes on and the money really starts pouring in. If you don't own gold, you don't know history or economics.

The drama and volatility will last and be worse than the Great Depression? He'd agree. Once this change really starts to take place, it's never coming back. Having a new currency reserve is needed. Asia, US, and Europe will each have a separate system.

Are we seeing a significant triple top and subsequent bear market? Current situation is not chaos. It's a blob on a platter, always getting bigger or smaller. Bond market is signalling bear, but stock market isn't. Fed is ready to start lowering. They're preparing for something, and how bad is it going to be? We need a monetary reset. We're heading for a slowdown, and it's best to prepare and be cautious.

Blockchain platforms. The technology will prevail. Bitcoin ran up, then crashed, and now it's shorting out. Likes bitcoin technology. At the next correction, that's the time to take a position. But the big ones like Google, who've had such a run, will be under pressure and government scrutiny.

Why is gold higher, but the companies are stuck in the penalty box? Producers have come down in a big way, because no one's coming into the sector. But that's the opportunity. AEM continues to move because if produces at $650 CAD, while gold is at $1800. Same with KL. He doesn't look at Barrick or Goldcorp, because they're like looking at IBM vs. Microsoft circa 1985. He doesn't want to play the waiting game.

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Market. Everyone recognizes that trade wars are extremely negative to global stock markets. We are seeing the impact as low bond yields as well. The impact of the trade wars has started and we will see it in the quarters to come. He has been avoiding cyclicals in the short term. He is staying away from everything that is economically sensitive. Energy producers and resources are not his bag.

Market Outlook - Typical Trump is to, when it looks like a deal is coming, he will get something out of the weeds and force you to accept his terms. The new NAFTA looks fine. He doesn't understand diplomatic niceties (and doesn't care for it either). He doesn't blaming for some things he is doing particularly when dealing with China. US policy for the last 25 years has been to ignore the maleficence of China. They have been stealing hundreds of billions worth of research from the US. They have a security system to watch over they own citizens. They are not our friends or allies. They are competition. It is a bestial regime.

What ETF would you suggest for the Energy sector? XEG is his top pick tonight. It captures the big guys in the sector. He would also prefer XLE in NY. He would avoid the small ones on Canada for now. In the US they can get things built. Canada is kind of close for business in Energy.

Is there a Canadian ETF in Canadian Dollars that tracks the NASDAQ 100? ZQQ from Bank of Montreal tracks the NASDAQ and hedged to Canadian. you pay a little extra for that but it is a good product.

What option strategy has the best probabilities of winning? Options are used by people that wants leverage. He is willing to sell options to those guys. That is why he likes covered calls. 80% of the time people that buy options lose money anyways.