Momentum fading after record run – Dec. 3, 2013

Posted by Ravi Gulati | Posted in Economy & Markets | Posted on 03-12-2013

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It’s just the second trading day of December and investors already look wary of letting the rampage run to the end of the year.

The Dow and S&P 500 were lower for a third day Tuesday, while the Nasdaq slipped for a second straight day.

The S&P has managed gains in December for 24 of the past 30 years, but with the index up 26% so far in 2013, investors are ready to take a break.

“It’s likely that markets will be in a holding pattern as we head into the business end of the week that starts with ADP employment tomorrow, the ECB on Thursday and ending with payrolls on Friday,” wrote Deutsche Bank analyst Jim Reid, in a market report.

Investors will probably stay cautious as they await the November jobs report, holding out hope that closely watched report will send a much clearer signal about the Fed’s next move.

Momentum fading after record run – Dec. 3, 2013. – CNN MONEY

Private mortgage insurers prod Ottawa to ensure CMHC raises premiums

Posted by Ravi Gulati | Posted in Economy & Markets, Financial Planning | Posted on 03-12-2013

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Canada’s private mortgage insurers are pressing the federal government to get Canada Mortgage and Housing Corp. to raise its premiums, sources say, a move that could add to the cost of a home for some buyers…………

But because the federal Crown corporation dominates the business, private competitors tend to copy its prices, and would be extremely reluctant to raise prices on their own, industry sources say. CMHC has not raised its prices since the late 1990s, and actually lowered them between 2003 and 2005.,…

Private mortgage insurers prod Ottawa to ensure CMHC raises premiums – The Globe and Mail.

Once flying high among currencies, loonie faces downgrade to 88-cents, says bank

Posted by Ravi Gulati | Posted in Economy & Markets | Posted on 03-12-2013

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U.S. investment banker Goldman Sachs is the latest financial house to sell the loonie short, forecasting the currency to coast into the 88-cent range next year. That is an even gloomier outlook than the one issued by the TD Bank a few months ago, which predicted it near 90 cents by the close of 2013.

The loonie closed up 0.08 of a cent at 94.46 cents US on Thursday on the news that Canada’s current account deficit had narrowed. It may gain a little more lift Friday if Statistics Canada reports, as expected, a healthy 2.5 per cent advance in the economy for the third quarter.

But these temporary recoveries are fooling no one — the loonie has lost about seven per cent in value from the beginning of the year and fundamentals point to further deterioration.

Once flying high among currencies, loonie faces downgrade to 88-cents, says bank | Toronto Star.

Waiting for a 10% market correction? Don’t hold your breath

Posted by Ravi Gulati | Posted in Economy & Markets, Financial Planning | Posted on 03-12-2013

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………………………….Bill Hornbarger, an investment strategist at Moneta Group, says a “5 per cent to 10 per cent correction wouldn’t surprise me if there was some bad earnings or economic news.” But any correction is likely to be “muted” until the Fed makes it clear when it will tighten monetary policy, he adds.

Waiting for a 10% market correction? Don’t hold your breath | Toronto Star.