This is not very good news. Interest rates are really low, but somehow, they are still falling slightly lower. The economy doesn’t seem to be strengthening, and there appears to be general panic (here in Canada) about the falling price of oil. In manufacturing countries, I’m sure they are happy, as the cost of a major input falls.

The stock market seems to be struggling. The asset class that has the best momentum is European stocks (XIN), but as I’ve said before, it’s doing well in Canadian dollar terms, likely mainly because the Canadian dollar is so weak. US small caps (IWM) and large caps (SPY) are also well-positioned for continued growth.

The most attractive of US large caps this week appear to be Amazon (AMZN), Beoing (BA), Walgreen (WAG), Lowes (LOW) and The Walt Disney Company (DIS). Among Canadian large caps, I like the looks of VRX and BAM.A.

Market Outlook February 23, 2015

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