Aggressive Strategy November 28, 2007:

WOW the markets have been exceptionally volatile over the past few weeks, all of the North American Markets are reacting to news by the minute and there does not seem to be any conviction by investors.

The economic news has been mixed but tending on balance to be negative, the only positive for investors seems to be the hope that interest rates will continue to fall. It seems that generally economic activity is slowing and that is creating downward pressure on most segments of the markets. The commodity markets except for energy have been much weaker on the belief that the US economy will continue to slow and enter recession later this year or early in 2008. I am not convinced that the US economy has much of an impact on the demand for basic materials such as copper, nickel, zinc and coal which have been dominated by Asian demand over the past 5 years or so.

A US slow down will actually be beneficial for continued Asian growth as it will slow the growth in the region to much more manageable levels allowing the Governments in the region to refocus the economic expansion as the excessive speculation and wildly expanding manufacturing sectors are brought under control by generally slower economic growth. The Asian expansion can not continue at the current double digit pace over the long run.

All commodities are going to increase in price over the next few months as the US dollar looses value with every interest rate reduction from the FOMC. Canadian investors should continue to hold positions in Junior gold miners such as Minefinders (MFL), Aurizon (ARZ), Gammon Gold (GAM) and IamGold (IMG).

There appears to be good value in the small natural gas companies more so now that gas has declined in value putting pressure on this sector. I still feel that Anderson Exploration (AXL) and First Calgary (FCP) offer excellent potential for capital growth over the medium term.

The base metal sector looks very attractive as the recent price correction has pushed equity valuations down to much more reasonable levels Breakwater Resources (BWR) appears to have excellent value at the current level and should continue to perform well going forward.