As share prices rise, so does the risk of correction

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

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When investors get too optimistic, it’s usually a sign that stocks are setting up for a fall.

Ned Davis, senior investment strategist at Ned Davis Research, says sentiment is bullish enough for him to start preparing for a 20 per cent drop in U.S. shares prices “sometime over the next year.” He doesn’t see a drop tomorrow or next week. But a review of sentiment indicators tells him it’s time to start planning for some downside action in stocks.

What are the warning flags?……………………………

As share prices rise, so does the risk of correction | Toronto Star.

IMF forecasts higher growth for Canada in 2014

Posted by Ravi Gulati | Posted in Economy & Markets | Posted on 28-11-2013

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The Canadian economy is poised to pick up steam in 2014 as the U.S. continues to recover, but with inflation still tame, the Bank of Canada should hold off on bumping up interest rates, the International Monetary Fund said Wednesday.

Meanwhile, elevated house prices and household debt levels remain a concern.

The IMF also said that Ottawa should consider scaling back the mortgage insurance program it delivers through the Canada Mortgage and Housing Corp.

Growth in the Canadian economy could reach 2.25 per cent in 2014 after remaining modest this year, the IMF noted in its latest report card on Canada.

IMF forecasts higher growth for Canada in 2014 | Toronto Star.

TSX moves higher on U.S. data | Toronto Star

Posted by Ravi Gulati | Posted in Economy & Markets | Posted on 28-11-2013

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The Toronto stock market closed slightly higher Thursday amid reassuring economic data from the United States………..

Sharply lower oil prices helped push the Canadian dollar down 0.59 of a cent to 94.38 cents U.S..

The TSX gold sector led advances, up 1.2 per cent as traders bought into a segment that is down almost 50 per cent year to date as gold prices have also fallen amid speculation that the U.S. Federal Reserve is set to taper its monthly $85 billion (U.S.) of bond purchases, which have kept rates low and supported a stock market rally. Also, inflation is very low in many parts of the world.

TSX moves higher on U.S. data | Toronto Star.

Senate reaches deal to end U.S. government shutdown, avoid default

Posted by Ravi Gulati | Posted in Economy & Markets | Posted on 16-10-2013

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WASHINGTON— Senate leaders announced last-minute agreement Wednesday to avert a threatened U.S. Treasury default and reopen the government after a partial, 16-day shutdown. Congress raced to pass the measure by day’s end…………………“This is a time for reconciliation,” said Senate Majority Leader Harry Reid of the agreement he had forged with the Republican leader, Sen. Mitch McConnell of Kentucky.

Senate reaches deal to end U.S. government shutdown, avoid default | Toronto Star.