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Markets. There will be some temporary disruptions to oil operations in Alberta because of the wild fires. There is a short term supply disruption, but this will not affect investing unless you are a day trader. Saudi Arabia is going to continue to be pedal to the metal with oil production. Summer driving will probably keep oil below $40. In September and October, we are at bigger risk for a pullback to $30. Global trade is slowing, including from China. This is a big challenge for the world. All the borrowing and spending is not working.

Markets. Since the financial crisis central banks have tried to do a lot in dabbling in uncommon monetary policies. This has had a lot of unintended consequences in the market places. No one knows what other unintended financial consequences will occur. The money available to borrow with low interest rates has not been invested in capital return. Investors are forced to go into risky assets. When you throw cheap money at people they do silly things. In 2005, crude oil was at $50. You go to the bank to explore your property, you don’t have a business. Now after the financial crisis, you have a business plan. Now you have a booming business. Now everyone is pumping oil. Everybody is over hedging and we have oversupply.

He always overlays a crude oil chart to see how it performs vs. crude oil. There is a lot of oversupply. It is hard for it to go higher than it is here because of that and so he is skeptical of a breakout here.

It is basically going sideways within a big range. It has its own story and business model so he does not have a strong recommendation. Nothing jumps out at him.

Canadian Banks or Lifecos. You have overhead supply. It is struggling. Prices will have a tendency to go back to the ‘backline’ about $19. Chances are that it goes a bit lower. Overhead supply is those that bought higher and are tempted to sell as it goes higher.

It is trading in an elevated range. This is a bullish pattern. Within this range investors are generally accepting the level. In the long, long run it looks fine. It has to break above $58 before it can go higher.

Canadian banks with a covered call overlay. There is not a lot of growth in the banks for the next few years so this is the best way to play them. These aren’t risk-free assets, but they can be yield enhancing. Canadian banks will likely re-test recent lows in September/October, so be patient before committing new money to them.

Silver ETF. SLV-N is the way to play the bullion. There is also HUZ-T in Canada. ZVR-T also.

He believes in the feed-the-world trade. It is very cyclical, but most of the bad news is in the sector. We are at the ‘08/’09 levels. You need at least a half position in it.

There seems to be some uncertainly. Chen thinks they can make it as a product builder, but also in other areas. There is a risk they don’t execute well. Their products are very, very good, but the business market may not do well. It is not a turnaround story any time soon. It is at the bottom of the range so consider accumulating it.

Do you wait until it is decided if Britain exits the Euro. Spain has an election the next day and could elect an anti-EU government. Big money portfolios will not dump their UK holdings. Don’t worry about ZWE-T. It is a great way to play Europe.

The yield gives you part of your capital back. But also when trades create a need to distribute capital appreciation, you get some back.

XTR-T is around 6%, but nothing yields that inside of it so you are getting some of your money back and there is natural erosion of NAV because of that. It is a nice conservative holding for some people. You have to recognize what is in there. There is some market risk later in the year. You want to be patient with cash now.

Educational Segment. Companies buying back shares. There are a couple of ETFs that focus on these companies. When you look at what share buy backs have done over the last 7 years to earnings, it has grossed up earnings per share by 25% for the S&P. Companies generally buy back 10 to 15% of shares when they do so. The earnings per share go up, but the EPS goes down. The market likes share buy backs, but it indicates the company does not see many growth prospects for themselves. There is a buyback index. Buying back shares was good until 2000. It is not good when interest rates are likely to rise. PKW-T does not always outperform and has not been doing so for the last year. Watch out when companies are increasing the rate of buying back shares.

Gold is re-testing the highs. You can see the downtrend line has been broken and this is bullish. For every big commodity trend to be broken, you need to take out the high cost producers, which we have done. You have reduced supply and this is bullish along with reduced interest rates. Canada is a politically stable country. This one looks better than SLW-T