Market Watch

  

Here comes the sun, the ice is slowly melting, it seems like years since it's been clear, the Beatles forecasted the current thaw of pessimism that has enveloped media and market pundits alike. Growth and profits are occurring south of our border.

U.S. GDP Growth Rate
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The panic that set in on the 2008 subprime mortgage meltdown caused stocks to crash down and left investors losing a decade of performance.
Fears elevated to panic levels with media and market pundits suggesting a repeat of the great depression. Despite recent media attention and suggestions that we are headed into a recession which would be two quarters of negative GDP growth. The facts do not support that call.

The recession ended in 2009 current growth is positive and the recent activity is influenced by businesses posting record earnings. So far in 2012 we have U.S. stocks measured by the S&P 500 index up 5.5% trading today at 1327.18. A challenge of the 2011 high of 1370.58 is expected and an all time high of 1576.09 can not be ruled out later this year. These events must be analyzed as to how it affects individual stocks that will benefit from this ever changing economy with incredible potential.

There are many opportunities to make money but it requires action on your part, each stock selected must show risk/reward of at least 2:1.
Make the call - let me provide you with a unique perspective on your investments through a no-obligation consultation.

Contact me by filling out the 'Unique Perspective' form on the Contact page, or by calling at 1-204-982-0633.

Before trading, please contact an investment professional.

  

Uncertainty is waning, confidence is increasing and corporate earnings are up. Nightly news casts are less pessimistic.

Consumer Confidence
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Money Multiplier
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Confidence is key, U.S. consumer confidence jumped to 64.5 last month up sharply from levels of low 40’s a few months ago. Investors are starting to believe markets will achieve higher levels through increased economic activity.

Money supply is at an all time high with World Governments spending at record levels to stimulate the economy but the multiplier of money had fallen to post war lows. The turn of a dollar had slowed from three times a day to less than once a day. With increased confidence and trust the velocity of money is increasing creating an improvement in economic activity and forecasts higher equity levels for North American markets.

There are many opportunities to make money but it requires action on your part, each stock selected must show risk/reward of at least 2:1.
Make the call - let me provide you with a unique perspective on your investments through a no-obligation consultation.

Contact me by filling out the 'Unique Perspective' form on the Contact page, or by calling at 1-204-982-0633.

Before trading, please contact an investment professional.

  

Inflation or Deflation; too many dollars chasing too few goods or too many goods with too few dollars.

Consumer Price Index
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Tomorrow the Consumer Price Index will be released for 2011. For those that remember the 80’s with the Consumer Prices rising 14%, current levels are likely to show a mild 3.2% indeed there is a near-term risk of flipping to deflation with European concerns and the World Bank reducing its estimate of world GDP growth in 2012 from 3.4% to 2.5%. Over the last decade we have seen Consumer prices as high as 5.6% in July 2008, and as low as -2.1% in July of 2009. Inflation as a concern is relegated to the distant future.

Developed economies have not fully healed and consumers are not yet ready to stand on their own two feet, any meaningful inflation is still a couple of years away. Perhaps it is time to reassess ones exposure to Golds and Oils that are so prevalent in Canadian Stocks and over exposed in Canadian Mutual Funds, With the Canadian dollar near par to the U.S. perhaps it is time to increase ones exposure to U.S. equities.

There are many opportunities to make money but it requires action on your part, each stock selected must show risk/reward of at least 2:1.
Make the call - let me provide you with a unique perspective on your investments through a no-obligation consultation.

Contact me by filling out the 'Unique Perspective' form on the Contact page, or by calling at 1-204-982-0633.

Before trading, please contact an investment professional.

  

Where is all the bad news media pundits were suggesting? It appears the economy is stronger than forecast.

S&P 500 Earnings
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Despite European woes and political infighting there are pockets of strength in North American markets. Indeed we are growing GDP to record levels albeit at a mild pace at this point in time. What is most encouraging and has not been reported widely is the fact that earnings by S&P 500 stocks is at an all time record high.

Global positioning is changing right before our eyes, the once mighty Eurozone which was a contender for the number 1 spot pushing the U.S. economy out has slipped rapidly and China is now threatening to take out their number 2 position. India is now set to challenge theEurozone at a pace more rapid than originally thought.

There are many opportunities to make money but it requires action on your part, each stock selected must show risk/reward of at least 2:1.
Make the call - let me provide you with a unique perspective on your investments through a no-obligation consultation.

Contact me by filling out the 'Unique Perspective' form on the Contact page, or by calling at 1-204-982-0633.

Before trading, please contact an investment professional.

  

Happy New Year! Year end results are in the only equity market to post positive number was the U.S. Dow Jones Industrial Average, up 5.5%.
What does 2012 have in store?

2011 Global Market Results
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India’s Sensex Index is the weakest in 2011 off 24.64%. The strongest global equity player is the U.S. Dow Jones Industrial Average with an advance of 5.53%. Canadian equities as measured by the S&P/TSX Composite Index fell 11.07% in 2011. What is currently notable is the price of Wheat which fell 17.82% in 2011 has risen 15.5% over the last 15 days.

North America will likely be the Global focus for 2012 with Europe struggling, the Mid East in political chaos with the Arab Spring awakening political awareness. Japan is still wounded, political pressures and corruption in Russia, Chinese accounting practices, India’s integration into the 21st century. Money globally is flowing into the U.S which will keep rates low and U.S. equities positive. When investing in equities it is important to realize that it is a market of stocks not a stock market. In order to make money one must focus on how events affect individual positions and measure the risk and reward that is inherent to that issue.

There are many opportunities to make money but it requires action on your part, each stock selected must show risk/reward of at least 2:1.
Make the call - let me provide you with a unique perspective on your investments through a no-obligation consultation.

Contact me by filling out the 'Unique Perspective' form on the Contact page, or by calling at 1-204-982-0633.

Before trading, please contact an investment professional.