The market appears to be catching its breath over the past couple weeks. This past week wasn’t particularly helpful (unless you owned bonds, which is a departure), but it wasn’t too bad, either. Canadian small caps (XCS) present the greatest momentum presently, followed by Canadian large caps (XIU) and gold (IGT). None of the asset classes I’m comparing appear poised to shoot out the moon, but stocks have a clear advantage over bonds.
The economy isn’t giving powerful signals of either strength or weakness. It appears to be balanced or struggling, depending on your perspective. This is the quarter where earnings reports general are slow to be reported, as full year financials are produced for Q4. Results for Q1 generally follow quite soon after. I don’t expect much variation as the holiday shopping season didn’t seem to produce unexpected results.