Notes from 1/8/10 Don Coxe call for his institutional following:

· Cautious despite recent stock mkt moves

· Growing disaster w/states like CA/IL. Il is not paying its bills (e.g., U of IL)

· When healthcare gets passed there will be huge change in longer term outlook for states who will have to shoulder a big % of increased costs resulting in downgrades for states; hospitals will be in really bad shape as $500b cuts in Medicare payments and many of their patients are already on Medicare

· Sheer scale of what Bernanke Fed has done is truly astounding; focus on 10 year to protect Fannie/Freddie with US now funding around 90% of mortgages; Bernanke has indicated he will stop in March but will be forced to continue

· Cold weather is bullish for grains although in Dec. did get return of some sunspot activity

· “If you’re not willing to buy commodity stocks why would you want to buy equities at all?” Should be way over weight

· Should be way overweighed in commodity stocks and emerging markets

· Would prefer Canadian bonds to US; Canadian dollar bound to strengthen against the US dollar – amazing how different the outlook is for Canada versus US