Sept 24th, 2007  

                               Portfolio Strategy | Nick Majendie, CA

September 24, 2007:    Summary of this week’s Strategy Note

• Last week was a momentous week for the financial markets. The Fed took very aggressive actions last Tuesday and the British government announced it would guarantee funds on deposit with any bank that was solvent but has liquidity difficulties.
• The question is whether this new found liquidity will override the fundamentals. If yes, investors' confidence will have been restored and the equity markets could well have seen their lows in mid-August.
• If no, we believe it means that a US recession will occur.
• In our view it is too early to tell which scenario is likely to prevail. Like the Fed, we intend to remain "data driven" over the next while. We will be watching our indicators but, in the meantime, we believe that in the face of the worst financial and liquidity crisis of over two decades our portfolios are well placed.
  
  Changes to Canadian Equity Model Portfolio

Sold our entire Kinross Gold (K : TSX).

Purchased Yamana Gold (YRI : TSX

 Putting Your Market Emotions in Perspective