Markets are closed on September 1 for the Labour Day holiday.

Over the past week, both stocks and bonds rose in value. While both have produced positive growth over the past week, month and year, stocks have outperformed bonds by rising more quickly. Stocks continue to present better momentum, and should be overweighted in any balanced investment account.

Brazil stocks (EWZ) have suddenly leaped forward, which gives them the greatest momentum among various markets. I don’t know the reason for the jump, and have no opinion whether or not it will continue (presenting an investment opportunity) or revert (presenting risk). American large caps (SPY) and Canadian large caps (XIU) both continue to have good momentum also.

Tim Hortons (THI) suddenly jumped in value as a takeover bid was made by Burger King. I don’t believe that one-time events truly impact ongoing momentum, so I will not purchase shares. Among Canadian large cap companies, CP continues to lead in momentum.

Market Outlook September 2, 2014

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