Interest rates continue to creep up. That’s not helpful for bond values, which fell again over the past week. Stocks barely increased, but that’s still positive. The result is that stocks continue to outpace bonds, and the outlook is very much in favour of better performance by stocks when compared to bonds. That doesn’t mean stocks will necessarily be positive, however.
This week, Canadian large cap stocks (XIU) have the best momentum amongst various asset classes. In the interest of taking responsibility, my advice last week to own Brazilian stocks turned out very badly. Luckily, I didn’t follow my own advice, owning CP instead. It doesn’t have the same diversification, but it produced better returns, which appears likely to continue for the coming week.
American tech stocks look interesting, including Microsoft, HP, Intel, Apple and Google, for anyone who’s watching and is inclined to do a little more research on your own.