For those of you who read this....just click on but seeing it was deleted I thought I would post it again. Note the last two questions...and answers.

1/7/11 Don Coxe Institutional Conference Call

· Bernanke made an important statement today indicating that Fed had no choice but to continue with its QE which Coxe refers to as “financial heroin”

· Latest employment numbers shows us that business sector is still very cautious about adding employees

· There is a debate on how much of the strength in commodities prices we are seeing is due to actual demand or whether Bernanke’s liquidity is leaking out to emerging markets.

· Nothing out there to suggest that expanding liquidity will stop anytime soon although Bernanke will have a tougher time with the Pauls in Congress. Bond market has responded by having one of its few good days.

· His view is that there are still big risks out there but that US recovery will look good compared to rest of the industrial world. Thinks therefore that strength in dollar is likely to last. Euro is now breaking down.

· Drought conditions is Asia and Eastern Europe and floods in Australia which has unfortunately created the perfect storm for high food prices. Resulted in a global “food shock.” This assures that there were be record demands from farmers for seeds, fertilizers, farm equipment, etc. at least for this year.

· Europe still has problems. E.g., Portugal is really having problems refinancing its reoccurring debt. One of the problems is that the duration of Europe’s debt is so short they are having to repeatedly refinance their debt which generates all these negative stories.

· Still of the view this is the time to be long equities especially given that you are only able to get 0% interest on cash. Means, however, that you must be selective in determining which equities you should buy.

· Beauty of commodities is that there is a limited supply attached to them.

· Housing is not getting any better. Once foreclosure process is cleaned up you will have lots more houses dumped on the market. Of the homes in the US with mortgages the average equity in them is 2.5%. This is not something to engender confidence in consumers.

· Currency moves have been pretty dramatic in the last 12 months. CDN is around par with dollar. Amazed at how well the Australian dollar has held up despite how their exports are going to be impacted given the flooding. Any Euro rally will be brief which should help their exports.

· Cannot just apply previous indicators to these current economic times as they are so dramatically different. We should expect there to be some shocks.

· Question from one money manager about oil sand stocks and the reports as to how much their costs are going up. Don responded that he said these stocks would be one of the winners out of the latest election due to Henry Waxman no longer being in “energy power” since Henry hated everything dealing with oil sands and what he termed “dirty oil.” There was a real concern at one time that exports to the US would end up being cutoff. True that companies have been having trouble in executing their strategy but he things their management will get this straightened out. Still believes we should have an overweight in your portfolio of oil sands stocks as it is cheaper to deal with their problems than to find and deliver other new reserves. Besides the reserves of these companies are so huge and this you cannot find elsewhere. So stick with this overweight.

· Question about rare earths and whether they should have a place in a commodity portfolio. Don feels uncomfortable with these are their prices are skyrocketing and they are so far away from production. No idea what their prices will be once they are produced. If you want to buy some just realize how speculative this area is.