Markets did very little last week. Interest rates have also remained essentially the same. As a result, the outlook this week is the same as last week: we prefer stocks over bonds. The outlook between foreign markets has shifted, however, and
North American markets were closed on Friday, but they’re open today. Inflation has jumped up from 1.1% to 1.5% (headline), but interest rates have dropped slightly. Inflation is backward-looking, whereas interest rates (and the stock market, to an even greater
Stocked dropped over the past week, but maintain their advantage over bonds. Within stocks, Brazil (EWZ) stocks are doing particularly well, followed by Hong Kong (EWH) stocks. In Canadian dollars, emerging markets (XEM) have the momentum advantage.
I was away on holidays the last two weeks, and boy did I miss out on a shift in the market. The momentum stocks that I own, VRX and DGC, both dropped in price by about 10%. Ouch. That’s one