Ewwwwww. The stock market has been volatile. It hasn’t been outrageous, as it would pending a crash, but it has been rocky. Gold has particularly negative momentum at the moment, small caps in Canada and the United States have turned negative and even emerging markets are looking down.

I’m not entirely sure why European stocks, followed by US large caps and real estate, have the best momentum. I wonder if some of the reason lies in the fact that the ETF is currency hedged, and perhaps the Euro is falling in value compared to the CDN$. Whatever the reason, I will continue to own XIN.

The momentum of Canadian stocks, compared to bonds, has turned negative. This could just be a momentary lapse, but bonds appear safer than stocks at the moment. This moment is a risky time and I will continue to watch the market movement very closely.

Market Outlook April 22, 2013

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