Is there a balance ETF you’d recommend? I see Claymore has a couple but I’m open to suggestions, bearing in mind that I’m at the $19.99 a trade level.

In my opinion, the US economy is in a “perfect storm”. Their government is still spending money like a drunken sailor to finance the ongoing war in Iraq, and they were talking about invading Iran. The credit crunch is in full force, so no matter how low the Fed drops interest rates, there aren’t many banks solvent enough to lend more money. There was a run on Indymac because their asset value is negative and from what I understand, there are more US banks with negative asset values. People are getting laid off left and right and many of them shouldn’t have been homeowners to begin with and foreclosure rates are at all time highs. People who have stable, well-paying jobs are seeing their homes decline by 30% +. Consumer confidence, the engine of the US economy is falling like a stone. Airlines are drastically cutting back on flights, the IPO and M&A markets are nearly non-existent… Do I need to go on?

As for Canada, we are turning into a one-trick pony with Alberta carrying the entire country’s economy. All commodities eventually correct, and if and when oil, natural gas and base metals correct, then LOOK OUT BELOW! Canada will experience the worst economic recession EVER because we won’t even have manufacturing exports to fall back on… OK, we have RIM, but can the maker of the Blackberry employ 25 million people?

Sorry, that was a very long answer to a very short question. But that is my general or “overall” feeling. Still, with that said, I took a small nibble at H&R REIT today in my RSP account… Haha! =0)

And in reply to Phil S., this approach is indeed not to be taken lightly. The goal is to identify stocks that are down through no real fault of their own. If the company continues to run its business profitably, and has the ability to retain and increase its market share in a recovering economy, then it’s still a good buy. Above all, we look at the depth of a company’s assets — could it survive a long, deep recession?

Companies like Ford or GM or many big financial firms are in industries that are currently infected with serious flaws, so why take chances? By all means, consider earnings and P/E ratios, but look at cash flow and debt as well. It sounds like an old record, but it still plays well: it’s all about the fundamentals, especially at times like these.