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Usually you get two legs down and they may be completed. Support in the low $11s. Probably the down trend is over.

The lumber side has been fantastic. The pulp side is at very depressed levels. Thinks this one will be buoyed up by the sector and is probably a good place to park some money.

Building a bit of a base. He favours this one.

The Yen has topped and the falling Yen will be helpful to Japanese export. It is an underperformer so he wants to be there.

There is no sign of a top. Just own the basket. It is a little safer.

US markets. People often confuse the economy with the markets. US has economic problems but they also have some very profitable bull businesses. There are businesses that the banks have deleveraged and companies that are making money globally so he sees no reason to be negative. Feels the US economy and global economies will chug along at a reasonable pace in order for these companies to have decent profits. One of the problems is that a lot of these companies are keeping their profits offshore because the US has such a high tax rate.

Likes this one because you are getting all the big US banks. He particularly likes that it is US$ hedged. Good choice. The one thing he cautions on the US banking sector is that even though they paid a lot of penalties of late, he thinks there are an awful lot of class-action lawsuits waiting in the wings.

Likes this. The only thing is you are dealing with the US$ issue as this trades in the US. Based on 750 stocks rather than 500 as in the S&P 500.

This is a new product that has come out in the last couple of months. A good product, but you do have to remember that you do have the issue of dividend withholding and foreign dividends being treated as income.

Why hasn’t there been a jump in the monthly distribution since the big Canadian banks increased their dividends? This one is very diversified. Have all kinds of different income generating products in it, so the banks are just one component. This is one of the reasons the MERs on this is high at around 90. For a person who wants a well diversified fund and are paying under a point, nothing wrong with this at all.

Caller would like to sell 35% of their holdings in their RRSP and just buy this one. Not really in favour of putting 35% into one ETF. This one is basically the remnants of what used to be the income trust ETF. Has a mixed bag of generating assets in it and nothing wrong with it, it’s just the 35% that bothers him.

Only trouble with this is that it is a basket of Futures so you have the risk and volatility of futures and all the things that are inherently characteristic of futures. Thinks this would be more for a short-term trading strategy of several weeks to a few months.

Never been a big fan of preferred shares because they are sold subject to interest rate changes. However, in this case they have gotten rid of the perpetual rate preferreds so there won’t be the same vulnerability to an increase in rates. About 70% of this is in P1s andP2s which is good. Likes the product.

Money covered calls. Do you have any guideline you use in buying these? If you bought a stock at $50 and sold the $50 Calls for $2.50 and all of a sudden the stock has gone up to $55, the option is worth at least $5. If the stock is going up that much, you might be thinking you should buy back the Calls, take a loss on them and at least have a profit on the stock. He has found that whenever he does this, he ends up with egg on his face because as soon as he buys back the Calls, the stock immediately drops. As a general rule of thumb, Don’t.

(A Top Pick Dec 22/11. Up 16.06%.) This is a core holding for him and something he has always held.