Sharky:

Peter Schiff is one of the advisors I listen to on a regular basis. Certainly he has been correct in much of what he has been saying. This is precisely why as an investing criterion, have and continue to diversify on a worldwide basis. The only US company I own stock in is Johnson & Johnson and even they now get greater than 50% of their revenue from off-shore including a significant position in China through four wholly owned subsidiaries. Additionally, I have created a considerable position in precious metals as the present worldwide liquidity explosion, has got to be inflationary ultimately.

As the inflationary contagion begins to spread, commodities will be one of the few asset classes to appreciate. In my opinion, the buildout in China, India and the rest of the developing world will be significant. This will mean a compounding impact on the price for commodities. From one side there will be the demand driven effect, compounded by the worlds limited natural resources which have suffered from thirty years of neglect due to low prices, with resultant under investment. From the other side will be the gradual weakening of the US$ which will drive costs up in $ denominated terms. As an energy and natural resource rich nation, Canada should ultimately benefit with a resultant strengthening of the Canadian Dollar. If Connacher can survive this rough patch, they too should benefit from these factors.

Brian