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Markets. We are at the tail end of the reporting season and, thus far, he thinks people are somewhat disappointed in the returns that have been coming in. ROE’s have not been quite as buoyant as had been hoped. This is a reflection of the underlying economy.

Banks. Hoping to see some modest improvements such as 3%-4%. As well, hopefully a couple of dividend increases. Probably from Toronto Dominion (TD-T) and CIBC (CM-T). Financial services in Canada is a pretty crowded play. We are back up to almost 2X book on financial services stocks now. People have overplayed the dividend. Dividends are a good place to be but isn’t expecting to see a whole lot of appreciation for the time being with the economy struggling.

Energy. Longer-term, this is the place to be. Have pulled back a little bit from the multiples we have seen before. Things in the oil patch have been a bit slower as weather conditions have hampered them to some degree. However, you have to take a 2, 3, 4 year time horizon when investing in energy because no one can tell you what the commodities are going to do short-term.

Gold. Has some moderate exposure. Views it as somewhat of a hedge against possible inflation or currency fluctuations that are taking place. Gold is always a tough one for a value investor because of the multiples those stocks tend to sell at but it is prudent to have 5% of your portfolio exposed there.

Base metals. Has been quite a setback in base metals and he is currently scouring looking for where he would like to position himself. Has a small exposure at the moment but would like to broaden it out.

Just finished an acquisition in Argentina which looks like a very promising ore body but people are worried about political risks that are starting to surface in some areas of South America. Have a fairly good production profile going forward and $19 would not be out of the question. Trading at 1.7X Price to Book and 17X forward earnings, which looks pretty good within the area.

Has been flat lately for good reason. People have been worried about lifecos in this environment but it is generally holding its own. ROE has always been better than the rest of the group. Investors Group (IGM) has certainly slowed down in this environment in terms of long-term asset sales they have been making. Also, has exposure to Pardeesa (?) in Europe, which caused some concern. Should weather this period but it is a long-term play. 5.6% dividend.

A good Hold for 3 years or should they Sell? At the current levels, the valuation is quite good but you have to have a 2-3 year time horizon. Low interest rates and mediocre equity markets have not been good for insurance companies.

Last quarter looked a little better. Interest-rates and equity returns were a little kinder to them but there were a lot of one-time things in that quarter. Overall core earnings were somewhat weak. The “Ultimate Reinvestment Rate Risk” is what he always focuses on for insurance companies. Should improve a lot from here. 6.3% dividend could be in danger but expect they will be very loath to cut. On a valuation basis, he would prefer Manulife (MFC-T).

Current valuation is fairly compelling. You’ll have to look out a couple of years to see some of their projects come on stream. Recently tried to raise $400 million but pulled that because market was not where they wanted to be. This indicates good discipline on management’s part. Have had some positive drill results on some of their operations. Strong balance sheet.

Uranium and this company have always been very difficult to judge. Just announced an acquisition in Western Australia. Paid very little but not sure what they will have to pay to develop the property. Unless they are absolutely dirt cheap, he tends not to look at uranium stocks.

All rails have taken a surge up lately and this one particularly after their proxy fight. Sold his holdings. Stock is priced for perfection. It has to go through a few years of anguish. There will be some management problems bringing their operating ratios down. Would prefer Canadian National (CNR-T). Buying a rail is buying a proxy on the economy.

(A Top Pick Aug 23/11. Down 7.04%.) In the long-term feels natural gas prices are going to be closer to $4. This is probably one of the strongest of the natural gas plays and has a balance sheet to take advantage of any opportunities that may come up. Feels a lot of power generation will be converted to natural gas. 3.6% dividend yield. This is a 3-5 year Hold.

(A Top Pick Aug 23/11. Up 6.51%.) Due to report soon and he expects a modestly positive quarter. Focus this quarter is going to be more on Canadian domestic banking so this bank will participate as much. Still likes.

(A Top Pick Aug 23/11. Down 4.78%.) Well managed company. Unlike some of their larger competitors, they are still able to acquire similar companies without running into antitrust etc. Could see it around $25 in 12 months.