The stock market did very little over the abbreviated past week. From a longer perspective, however, it continues to rise. The US market is doing particularly well. I continue to own US small caps (IWM) in my US$ account and European stocks (XIN), despite the news headlines, in my CDN$ accounts.

The only other point of interest that I notice is that inflation has risen again. It’s a backward-looking measure, so it’s of limited usefulness. However, it was surprising to see it reported at 0.5% last month. Any fears of deflation should be assuaged (I just wanted to use that word) by the recent report that inflation was 1.0%. This level is still below the Bank of Canada target, and will likely support the continuation of supportive policy.

Market Outlook – April 1, 2013

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