With the flooding in here Calgary, I didn’t even notice that the stock market dropped overnight Wednesday. At the same time, interest rates appear to be rising, which causes the value of bonds to fall. Interestingly, stocks have better momentum than bonds. I say that’s interesting, but it just mean that bonds are losing value faster than stocks. Neither really has forward momentum.

In fact, surveying the various asset classes, the US stocks (IWM, SPY) are the only ones with positive momentum. And I think that’s just because they had more momentum than others recently and it hasn’t averaged out yet. But in a very close second place is cash. That’s right, a high-interest bank account may be your best bet right now.

With everything that’s going on, I’m tempted to find a cozy bunker to spend a few week. Luckily, I sold my ETF and bought Magna International (MG), which continues to move in the right direction. For now. If there’s no post next week, it’s because I’m in the bunker. 🙂

Market Outlook June 24, 2013

Leave a Reply

Your email address will not be published. Required fields are marked *