Comments From The Floor

Investors are saying:

-As long as the uptrend in commodities remains in place, investors find it difficult to get a foothold in the market.
- What it means for the USD and the re-coupling/ de-coupling argument, regarding Asia and the ROW, is still unclear.
- As a result investors are reducing the level of their exposure at this stage.
- Some of our under performance has been the result of lack of exposure to certain industries such as oil, gas & metals and mining.
- We view these ares as overvalued with unsustainable returns.....
- We view (believe) this to be a classic value manager dilemma.

There are 439 nuclear power stations in the world, 18 in Canada and 104 in the USA. The demand for this type of power will (more than) double by 2030. The mining industry is producing about 47,000 tons of yellow cake a year. Industry officials expect a 43% shortage in supply in the next ten years.

Uranium has had a material correction in the past 12 months...time to start buying it again!

Here in the Midwest the $100,000 home is making a big comeback. This month more than 2,600 houses were on the market at less than $120,000- a 608 percent increase over the same period in 2005. The inventory for all price ranges increased 62 percent over 2005.

As an investor there are three easy choices today. 1) Invest in hard assets that are appreciating in value because of long term supply demand imbalances, 2) Try to bottom fish in depreciated/ deprecating assets that have supply demand imbalances 3) Sit in cash and do nothing.

The vast majority of investors are either in cash or trying to pick bottoms in stuff.....this is human nature at its best.....and thus creates continued opportunities for the 1st investor class.

Danny Boy seen here likes CCJ....the largest North American producer of Uranium.