There is almost no change from last week. Interest rates remain low and stable. The interest paid on savings accounts has crept up, and the five year fixed mortgage rate has fallen slightly. Central bankers continue to talk about stimulus (quantitative easing) to keep the economy growing and climbing out of recession.

The stock market continues to climb, even if momentum is slightly lower than last week. Earnings continue to come in better than expected. There is a good possibility that the market will adjust to improved expectations. If that’s the case, the market will continue on its upward climb.

Today is the municipal elections in Alberta, next Monday is the municipal elections in Ontario and in two weeks are the mid-term elections in the US. Different people vote for different reasons. No matter your decision, everyone ought to vote.

October 16, 2010 Market Update