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Should North American investors be investing based on an economic environment that is recessionary or inflationary?
As mentioned previously, the US economy seems to be in a bull market as bad news (such as housing or employment stats) results in rising stock markets. If the market responds to bad news by pushing up the stock […]
Recession or high inflation?
A stagflation is a combination of a recession and an inflationary environment; the economy is contracting yet inflation is high. If the governments were doing their jobs properly this wouldn’t happen, but since they all want to get re-elected they tried to continuously pump up the economy so that it grows at […]
Economics Recap:
The US manufacturing index for April was 48.6 same as the previous month. Readings less than 50 means the sector is shrinking, while readings greater than 50 mean the sector is expanding. This is the 3rd reading in a row where the manufacturing sector has shrunk. As mentioned many times before, this isn’t at […]
Interest Rates:
The FOMC did as expected and cut short term interest rates by 25 basis points and as you would expect they also signaled their concern about inflation even though fighting inflation isn’t their priority.
Economics:
Stagflation from the US might be spreading to Canada as monthly GDP in February dropped 0.2% and the industrial producer price […]
Economics:
The Bank of Canada reported that it doesn’t see credit conditions returning to normal until 2010. Growth in 2008 is expected to be weak but still positive 1.4%; 2009 should see strengthening to 2.4% and 2010 should see growth of 3.3%. Given the weakness forecasted, expect the BOC to continue cutting interest rates at […]
