Donald Coxe

Donald Coxe

Postby winston » Tue Jul 08, 2008 4:28 pm

I have a lot of respect for Don Coxe and I used to dial into his telephone conference when I was much younger.

==========================================

From Donald Coxe, Global Portfolio Strategist of BMO Financial Group

1. In long-only equity portfolios, continue to underweight Wall Street banks and others that have been reporting high exposure to perfumed products of indeterminable value, including those which last year revealed – under duress – high exposure to SIVs. Within the financials, emphasize those whose loan losses are of the traditional, cyclical variety – not in derivatives or in untraditional banking businesses. Good banks that have stuck to their knitting – and whose CEOs’ compensation has suffered along with their stock prices –should be retained.

2. In long/short portfolios, be long commodity stocks and short bank stocks that make headlines for untraditional losses. That trade hasn’t been working lately, but it remains an overall portfolio risk-reducer. The list of banks that have shown great skill and profitability by going heavily into new kinds of products and new kinds of accounting is roughly as long as the list of major copper, oil and gas producers that profited by selling heavily forward.

3. A financial-led bear market within a financial-led recession can be particularly perilous if central banks run out of ways to reflate the system – and surprisingly benign if the central banks’ rescues remain timely. To date, the central banks have been up to the job – if propping up a badly-behaving financial sector is a key component of their job descriptions. Result: the overall stock market has outperformed our expectations. We still don’t like the risk/reward ratio.

4. Dividends become more attractive as central banks cut rates. The problem for investors is that many of “The Great Dividend-Paying Stocks” are financials that have been reporting ghastly blunders. In many cases, their payout ratios have climbed far above the 50% threshold that has made these stocks better investments than bonds. Opportunities remain – and dividends may be the only positive return most US stocks will deliver this year.

5. Although North American consumers have yet to see the cost pass-through in major foodstuffs of $6 corn and $8 wheat, it will come sooner or later. Based on past periods of food inflation, one of the first consumer cutbacks is on eating out. Restaurant stocks are especially unappetizing when food costs soar out of control.

6. Gold has pulled back from its high because the dollar stopped falling and the bank bail-outs seem to be working. Remain overweight gold as a clear-cut hedge against further bad news on both those fronts.

7. The Canadian dollar decoupled from the euro, failing to rally to new peaks – which makes little sense to us. US clients should continue to use Canadian government bonds and Canadian short-term investments as alternatives to Treasurys and US cash.

8. Within the commodity group, continue to accumulate the leading agricultural stocks. Given the spectacular performance of the fertilizer stocks, the best bargains currently on offer are in the farm machinery companies. The global food crisis will almost surely cripple the opposition to GM seeds, which means the seed stocks have great upside room.

9. Within debt portfolios, continue to emphasize inflation-hedge bonds – preferably in strong currencies. Treasurys remain overvalued, despite the recent strong run-up in yields from barely observable levels.
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Re: Don Coxe

Postby winston » Tue Jul 08, 2008 4:31 pm

Donald’s monthly investment report, entitled “Basic Points” (subtitled “Goodbye, Global Savings Glut: Hello, Food & Fuel Inflation” for the June/July 2008 edition) has just been published.

1. This is a Bear market on Wall Street. Like other bear markets, it is being led by the financial stocks. Until they start to outperform on relative strength, the market’s primary trend is down.

2. Canada went to another new high last week. This year will be the seventh straight year that Toronto has outperformed New York. At some point, those Canadian investors who, afflicted with the national inferiority complex, are so eager to sell Canadian stocks to buy the big US names discussed on CNBC will realize just how expensive their bad habit really is.

3. One reason for Canada’s outperformance is that Canadian bank stocks have been so strong compared to their US counterparts. A decade ago, the price to book comparisons favored US banks. In recent years, it has been “No Contest”. As of last month (according to the great Hugh Brown), the ratio favoring Canadian banks over US banks went to a new high. That means, for Americans, if you must own banks, go North.

4. Gold gives three signals: inverse performance to the dollar, an inflation call and a warning if a financial crisis impends. Gold shot through $1,000 an ounce at the time of the Bear Stearns vaporization: many investors (including us) thought the Bear was, with Goldman, one of the two well managed investment banks, so its demise meant further collapses. When Bernanke managed to avert further crashes, gold retreated to $850. It is once again signaling that there is stormy weather ahead on Wall Street, just as there is stormy weather on the plains.

5. That stormy weather across the Midwest keeps destroying crops and sending grain and soybean prices skyward. Remain overweight the fertilizer, farm equipment, and seed stocks. They are no longer cheap, but, unlike most other equity groups, they offer powerful earnings growth stories - even if the US and Europe go into recessions.

6. Remain overweight the oil and gas stocks. We think the upside potential for natural gas now exceeds that of oil, which is vulnerable to a downside correction, particularly if Congress passes a law that forces pension funds to disinvest in commodities. We still think that is unlikely, because it would not only be bone-headed, but it would set a terrible precedent, and would undermine the basic theory underlying ERISA.

7. The mounting propaganda campaign against the Alberta oil sands could inflict real harm. We do not recommend that clients invest in companies that are still far from production, but do recommend that clients stay overweight the producers. If the US actually decides to ban imports of Alberta synthetic oil, then their production will be sent to China. Americans would then be even more dependent on Venezuela, Nigeria, and the Gulf states.

8. Although the US economy is weak, we do not believe that the US bond market is attractive. We think the major central banks will be forced to tighten policy. Canada has already shown that it is leery of further easing; the ECB and the Bank of England will soon be tightening. If Bernanke keeps focusing on saving Wall Street’s worst, then US inflation will climb faster and the dollar will sink faster.

9. The economies offering good economic growth and good demographic growth are all outside the OECD. Most of their stock markets soared last year and have gone into a funk this year. We worry that food inflation, coupled with high energy prices, will pose great challenges to some of the rising stars internationally. In particular, we are concerned about India, which is most vulnerable among the large economies if severe weather should trigger $9 corn and wheat. Brazil is the major emerging economy whose stock market has remained strong, and that actually benefits from crop failures abroad.
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Re: Don Coxe

Postby winston » Fri Aug 08, 2008 6:37 pm

Donald’s monthly investment report, entitled “Basic Points” (subtitled “The Devils & The Deep Blue Sea” for the August 2008 edition) has just been published.

1. This is not the end of the commodity bull market. Bear Stearns, F&F and other crises will one day seem trivial. The new global middle class that is repricing commodities never will.

2. Remain underweight the banks and financial stocks that invested heavily in the asset classes that collectively created a global financial crisis. Despite the frantic efforts of the Fed and Treasury, new challenges appear each week. The deleveraging process is accelerating.

Those peddling bank paper perversely insist that these writedowns and bailouts are now so gigantic that a turning point is near. We think serious investors should compare this sordid story to the SARS epidemic: when the number of infected people was rising sharply and rapidly, cautious flyers asked themselves, “Is this trip necessary?”.

3. We recommend that clients begin taking preliminary positions in companies that stand to benefit most from the possible onset of realism in US energy policies. When – not if – offshore drilling finally gets the nod, the majors and service companies should benefit enormously. Arctic drilling could be next, from which some important Canadian companies would benefit, although the technological problems are formidable, and the pipeline issues have not fully been resolved.

4. As for corn ethanol, the producers have been lucky: they benefited from $125 oil, which has largely offset $5.50 corn. They have also benefited from the plunge in natural gas prices. As if those weren’t enough to save an industry whose fundamentals had become so controversial, they also benefited from the collapse of Doha, because the embarrassing tariff against Brazilian sugar ethanol survived.

5. Natural gas supplies have exceeded expectations because of the Barnett Shale and coal-bed methane booms, and because this summer has not been as hot as had been feared. We recommend the natural gas-oriented producers with above-average reserve life indices.

6. The fertilizer companies have delivered the most impressive earnings gains of any commodity group. Nevertheless, their share prices have fallen in recent weeks along with other commodity groups on days when traders have been buying banks and dumping commodities. They probably have the most predictable earnings of all the major commodity sectors, and should be cornerstones of any resource portfolio. As for the bricks, they are the farm equipment companies. The roof and windows are the logistic companies and seed manufacturers.

7. The continuation of the wide spread between Libor and the Fed funds rate, despite the best efforts of Messrs. Bernanke and Paulson, suggests that the real US economy will begin to show serious strain because banks are cutting back on making traditional loans – they have squandered their resources in untraditional products they never really understood. Hoarding liquidity is like hoarding corn or wheat: it triggers shortages and punishes the weakest consumers.

8. Gold remains the asset that offers unique risk reduction features in equity and balanced portfolios. As to investment strategies, the ETF outperforms during gold bullion selloffs, but the stocks outperform when bullion rallies. We believe investors should have exposure to both kinds of asset, but leave the weighting to be resolved on individual portfolio risk/reward considerations.

9. We keep reading forecasts predicting falling inflation and gold prices because of a US recession, but insisting that the recession will be neither deep nor long. Recession actually proved to be an aphrodisiac for gold lovers in the seventies: each of the recessions back then was accompanied by higher inflation rates than almost any prominent economist had predicted. We do not expect a recession so deep that it will stop the march to higher inflation, with the band music and drum beats coming from the major emerging economies. We remain negative on longer-term dollar-denominated nominal bonds. We prefer mid-term, inflation-protected bonds in strong currencies
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Re: Don Coxe

Postby winston » Sat Sep 13, 2008 7:52 am

Donald’s monthly investment report, entitled “Basic Points” (subtitled “Can’t anybody here play the game” for the September 2008 edition) has just been published.

1. The two most important forces in equity markets since July 13th have been powerful strength in financial stocks and pathetic weakness in commodity stocks. Since they have been inversely correlated for more than a year, investors should assume that the commodity stock bear market will continue until the financials roll over. The F&F bailout is merely the second act in a tragedy that has an unknowable number of acts to come.

2. When the financials do roll over, gold and gold mining stocks should move swiftly back into favor. Inflation remains above central bank target levels in the US – and in many other countries across the world. And any return to pronounced weakness among the bank stocks will be strongly bullish for gold.

3. With OPEC’s token production cut failing to impress the markets, oil prices will fall further. It won’t take more than a few days of even 750,000 b/d of production above consumption to drive oil prices down. Conversely, any outbreak of civil strife in Nigeria that affects offshore production could have a sudden upward price impact. We expect oil to trade in a range of roughly $80 a barrel to roughly $130 a barrel next year, but we have no great confidence in that forecast. We are more confident in predicting $150 oil within the next three years, as the next global economic recovery unfolds.

4. Barring an early killing frost, this year’s US corn group will be a barn-buster. What next? Corn is in modest contango for the next two years’ crops. Because contangos are so unusual these days, and because grains have such high producer/consumer participation across the curve, this is to us a sign that farmers and users are believers that high corn prices are here to stay. That means the fertilizer, seed and equipment stocks are cheaper now, relative to forward corn prices, than at almost any time in the past four years.

5. The pullback in oil prices and the dramatic bank rescues should have been enough to send the S&P back into bullish mode. It needs to break 1310 on the upside to take away its bearish condition.

6. The real yield on the Treasury 10-year is now a negative 145 bp. On a two-year hold, this means there could be more endogenous risk in nominal bonds than in most blue-chip non-financial stocks. The rush out of TIPs into Treasurys is doubtless driven by the unwinding of F&F exposures, but the long Treasurys are now seriously overvalued.

7. The biggest near-term upward surprise in commodity prices could be natural gas if (1) the sunspots don’t reappear, and (2) the historic correlations of gas to oil reassert themselves.

8. The Canadian dollar is being hit by the commodity price plunges, deterioration in the trade account, the worsening economic outlook in Central Canada, and the uncertain outlook in the October election. Whether Tories or Liberals win in Ottawa, Canada’s fiscal situation will continue to be superb compared to the US, particularly if Obama wins. We remain very positive on the loonie as an alternative to the greenback.

9. US election campaigns can be excuses for bold acts by foreign adventurers. Although President Bush was a non-person at the Republicans’ Convention after he gave his brief speech by satellite, he’s going to be President for four more months. The world should hope that rogue states think about that before deciding that Washington will be too distracted by the election to do anything about a surprise attack or invasion.

10. We have no clear idea how long it will be before we can look back to today’s prices for commodity stocks and say, “Wow! I wish I’d loaded up then!” We remain certain that day is coming.
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Re: Don Coxe

Postby winston » Mon Oct 13, 2008 4:23 pm

Donald Coxe’s monthly investment report, entitled “Basic Points” (subtitled “Homeicide: The Crime of the Century” for the October 2008 edition) has just been published. He is Global Portfolio strategist of BMO Financial Group and has over the years become known for his accurate analysis of the “big picture”.

1. Our recommended equity exposure is at or near minimum, depending on a client’s overall portfolio structure and risk tolerance. At 46% for pension funds, it is close to an absolute bottom level of 40%. At 20%, cash is at our maximum.

2. Long-term investors should not delay much longer in picking among the wounded commodity stocks on the market’s bloodied battlefield. The best of these companies are among the best the world has to offer, in terms of importance to the global economy, competitive position, balance sheets, cash flow, and management quality. At current prices, many of them sell for no more than a discounted value of their reserves in the ground, with no allowance for their balance sheet assets.

3. The agriculturals have been savaged to an astounding extent. The global food crisis has been put on hold, but it will only take one medium-sized crop failure to bring it back with even greater intensity. A relative handful of great companies has the facilities, technology, management, and distribution to mean the difference between widespread global starvation due to scarcity and excessive food prices, and enough protein production to meet the needs of a billion people escaping diets of rice bowls and bread.

4. The massacre of their stock prices means that these industries will not be able to expand their operations and create oversupplies of their products. That means they will make even higher profits in the next phase of this super-cycle.

5. One side effect of the “Midnight Massacre” is sharply lower US interest rates, due partly to the short-covering rally in the dollar and to the collapse in stock prices forcing asset reallocation. Those lower rates will mean that the millions of US mortgagors facing resets in the next twelve months should not be facing the kind of ghastly monthly carrying costs that the most bearish forecasters were predicting as little as five months ago.

6. Commodity prices fall during recessions – but the real value of great commodity stocks does not. Why? Because recessions are devastating to smaller, undercapitalized commodity producers, and they become easy pickings for the majors once they see light at the end of the tunnel. “There’s nothing surer, the rich get rich and the poor get poorer” was a depression song, but it will doubtless have relevance as the big commodity companies survey the landscape.

7. Gold and gold-mining shares remain the best way to reduce endogenous risk within an equity portfolio. Although inflation is bound to recede for at least a few months, the amount of stimulus being injected into the global system will prove highly intoxicating once the downturn bottoms out, and gold should move to new records.

8. This “largo” phase of the commodity sonata has more tragedy in it than we expected or, indeed than most symphonies (apart from Tchaikovsky’s) have in this movement. We should have alerted clients to the rapid deterioration in the fundamentals in the prior issue of Basic Points. We tried to make up for that default in our September 19th Conference Call, which not only advised significant cutback in equity exposure, and significant increase in cash, but also cut commodity stock exposure to energy and base-metals stocks in favor of the precious petals. We believe these rebalancings should be some consolation to investors in the risky times ahead.

9. The scale of debt build-up, the scale of the complexity of assets accumulated during the late stages of the bank mania, and the scale of deleveraging mean that the level of overall endogenous economic risk is truly unknowable. We know that, with the collapse of Lehman, many hedge funds have sustained big losses subject to what could be protracted legal proceedings. Those assets may have been sold or may be overhanging the market. Never before have so many politicians and so many bankers colluded to behave so badly. We still doubt that their malefactions have created a Mama Bear market, but we’ll probably know within weeks.
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Re: Don Coxe

Postby winston » Thu Nov 20, 2008 12:06 am

Donald’s latest investment recommendations:-

1. It is definitely too late to sell stocks, and it is still too early to do more than nibble at bargains. Investors should be opportunistic buyers, because today’s prices for quality stocks will look ridiculously cheap within two years – or less.

2. When the time comes to begin re-accumulating equities, buy banks and diversified financials. If there is going to be a global economic recovery, these former pariahs should perform well – under mostly new management.

3. At the same time, buy commodity-oriented stocks. They are oversold to depths we could not have imagined. When, not if, there is a global economic recovery, these stocks will once again be the winning asset class.

4. While you are waiting, you should be starting to accumulate the bonds – convertible and otherwise – of quality corporations. What could be the trigger for a major equity rally would be a sharp contraction in the near-record yield spread between investment-quality corporates and Treasuries.

5. Buy emerging-market bonds from the fundamentally sound economies, such as China, India, and Brazil. Avoid Eastern European debt.

6. Another group to be included when you are once again accumulating stocks is the leading business-oriented tech stocks. These companies will participate in a global recovery, whereas the consumer-oriented techs may have to wait quite a while.

7. This is also a good time to be looking at the railroad stocks. They benefit from lower energy costs, which may offset a significant percentage of the cutback in top-line revenues during the recession. Coming out the other side, they should be core investments.

8. Gold has been a disappointment. It has outperformed stocks since the S&P’s peaks, but not enough to be profitable. As deflation fears ebb, it will once again be lustrous.
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Re: Don Coxe

Postby winston » Tue Jan 06, 2009 5:38 pm

I've alot of respect for this guy and have been following his calls for many years. Too bad he would be retiring but I'm sure that he would be still around ...

==========================================

http://watch.bnn.ca/squeezeplay/decembe ... clip124130

BNN speaks to Don Coxe, global portfolio strategist, BMO Financial Group.
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Re: Don Coxe

Postby winston » Mon Apr 06, 2009 7:34 pm

Donald’s latest investment recommendations are reported in the paragraphs below:-

1. If you haven’t sold your US equities in the face of all the talk about a Depression, then you shouldn’t let anyone convince you now, although you may want to take advantage of this rally to lighten up on stocks that worried you most.

2. There will not be a new bull market without leadership - at least in its early stages - from the financial stocks. This is a time for stock-pickers to select survivors. There will doubtless be more nail-biting moments before anything like an “All Clear” is sounded, but commercial banks with strong deposit bases and small business franchises that haven’t tried to strut like Wall Street Ramblers will surely prove worthwhile.

3. Gold has generally been strong despite all the talk of Depression and deflation, and despite the rally in the dollar. It serves two investment needs - on a day-to-day basis it provides a hedge against financial implosions and broad stock market sell-offs, and on a longer-term basis it provides a hedge against the inflation that seems inevitable once the US economy begins to crawl out of the pit. It got overdone when the pessimism about runaway US government spending and excessive Fed stimulus reached peaks. It remains a core holding in times when economic and financial risks remain both huge - and unknowable.

4. Since “The Midnight Massacre” of July 13, the dollar, the yen and the Swiss franc have outperformed other currencies as the currencies in which debt was denominated. Deleveraging meant that banks and other speculators were forced to sell other currencies and other kinds of assets to repay debts denominated in those currencies. The dollar now stands alone as the last currency winner from debt unwinding. The yen has now succumbed to the moribund Japanese economy. Even the mighty Swiss franc has fallen, as the Swiss Central Bank seeks to reduce the franc’s value to protect watchmakers and other Swiss industries. We believe the Canadian and Australian dollars are deeply undervalued.

5. Watch the websites that update the sunspot story. If the spots don’t return by mid-June, there might well be great rallies in the grains. Buy the fertilizer, seed and farm equipment stocks.

6. The publicly-traded debt of most quality companies should outperform the stocks until the crisis is resolved and/or the economy revives. Which bonds to choose? In general, if you like the company, you should be kindly disposed towards the debt. Back in our debt-management days, we learned, from some painful experience, that if you don’t like the management much and won’t buy the stock, you shouldn’t touch the debt, regardless of what the ratings services say.

7. If the S&P breaks down heavily anew, then you may finally get the kind of buying opportunity that will later prove to have been quite wondrous. For now, continue to hold substantial cash and mid-term bonds.
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Re: Don Coxe

Postby winston » Mon Apr 27, 2009 5:19 pm

Donald Coxe’s Basic Points research report (subtitled “Where will America go to grow”):-

1. F. Scott Fitzgerald had it wrong, at least for American stocks: you do get a second, and even a third chance. Stocks leading that six-week rally looked down, couldn’t see the bottom anymore, and promptly retreated to lower levels. Think about what you’ll most want to own when The Real Thing arrives, and accumulate them at leisure, while the market tries to decide whether the economic recovery is a month, a quarter, or a year away.

2. Larry Summers adroitly brushed off a question about future levels of unemployment by saying, “Economic forecasters are divided between those who know they don’t know, and those who don’t know they don’t know”. Galbraith said the function of economic forecasting has been to make astrology look respectable. We know we don’t know, but we know we didn’t feel comfortable with the speed of optimism’s return. Those last two deep Mama Bear recessions didn’t end with such alacrity - nor did optimism return so speedily.

3. We do believe that the stock market is giving the correct signals that techs and commodities will lead the next recovery.

4. The other winner will be (sound of trumpets) commodity stocks. They were heavily outperforming the S&P until the late stages of the recent rally. We think they’ll move back to #1 slot - at least on relative strength.

5. Gold has been a bitter disappointment to its boosters in recent weeks. Bullion is down 4.6% this year, and most of the leading stocks are down far more than that. These setbacks came at a time when gold was getting more publicity as a haven investment than it has received in decades. Gold has been hurt by two rallies - first the dollar, then the bank stocks. More recently, investors have been spooked by the deal for the IMF to sell 403 tonnes of gold, at a time Indians, traditionally the most reliable buyers, are on strike. That 500 tonnes of scrap gold has come to the markets this year is a bad news/good news story: it’s a huge amount for markets to absorb, but it proves anew that gold is a precious asset in tough times. Gold stocks remain core investments within equity portfolios, reducing overall portfolio volatility. They will be superstars when the dollar finally falls, and people begin to get genuinely worried about inflation’s return. The stocks will outperform bullion on the upside.

6. Copper’s remarkable performance (up 48% in three months) worries us. Yes, China is coming back, but the industrial world is looking as bleak as a group of paid mourners at a funeral. We do not recommend adding to base metal exposure.

7. Within the energy group, we believe the bookends - refiners and oil sands - are most attractive.

Why refiners?
(1) Most oil analysts despise them;
(2) They have to continue to refit their refineries to provide for greater percentage usage of that great nuisance, ethanol;
(3) Americans are driving less; however
(4) Refiners should hold up better than other oil sectors if there’s one last oil shakeout coming.

Oil sands: You just possibly may never be able to buy oil for the 2020s as cheaply as you can today by buying the oilsands stocks. These are cornerstone investments for long-term oriented investors.

8. It’s planting season as we write, and the snow is largely gone. Low corn prices are discouraging farmers from planting as much corn as last year. Higher soybean prices (and cold wet weather) are encouraging them to plant more beans. Both these crucial crops are priced profitably for farmers, so don’t believe the talk that they’ll be cutting back dramatically on fertilizers. However, the extra emphasis on beans is bad news for the nitrogen fertilizer companies. (Beans don’t need nitrogen.) Overall, we still think the agricultural stocks have the best risk/reward profile.

9. The steep yield curve entices investors to buy long-term bonds and enriches all those bankers who have any wiggle room for making real loans after succumbing to the allure of all those fascinating, sophisticated ways to make ghastly bets. However, what the market giveth, the market taketh away once the economy begins to recover and inflation begins to return. Stay below your duration benchmark: give up yield now for performance later.
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Re: Donald Coxe

Postby winston » Thu Jun 11, 2009 7:44 pm

June edition of Donald Coxe’s Basic Points research report (subtitled “Who Will Really Lead the Global Rescue?”) :-

1. The current US equity rally shows signs of needing a summer rest. But it will not fall back into the Slough of Despond. This is a cyclical bull market within a structural bear market – until proven otherwise. What it most needs now is a lift from the bank stocks – and from sharply rising volume on days the market rises sharply, and from falling volume when it falls. It has been getting none of the above.

2. Remain overweighted in the commodity stocks, and remain diversified among the four commodity groups. Leadership will rotate from week-to-week, but all four groups are showing good strength relative to market indices.

3. We hope we are right that gold-related investments will be rewarding, but will likely underperform other commodity-related investments in the next few months. That means the global economic recovery was proceeding without setting off inflationary sparks. Thereafter, concerns about the dollar and the effects of the all-out reflation programs will once again boost demand for gold.

4. The dollar has attracted fundamental criticism from one of its largest holders – the Chinese. They have also transformed their Treasury holdings by buying bills and selling notes and are well on their way to becoming a demand depositor at the Fed. By forgoing nearly all the interest they could earn, they are telling investors that we should be concerned about the dollar. Believe those who back their bets against the buck so big.

5. The Canadian dollar remains undervalued relative to the greenback. Canadian companies should emulate Teck: borrow, where possible in US dollars. Canadian equity investors should shop at home first, then look for US bargains.

6. Keep bond durations low. We have entered a bond bear market at a time of a declining dollar. That has historically been a lethal combination.

7. Do not join the all-out bears on America. The American economy is more resilient than the gloomsters believe. It can even survive the wounds inflicted on it by the Wall Street-Fannie-Feddie-Frank follies – and the Pelosi-Obama programs. Nevertheless, there are now some better investment alternatives elsewhere—across the Pacific and above the 49th Parallel.
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