For those that are away enjoying sunny skies somewhere, you’ll be glad to know we have some sunny skies of our own today. Looking at my screens I see most North American markets down between three quarters to a full percent. It seems the trend has been to buy on dips as of late, but.
The Dow Jones Industrial Average reached an all time high this week, surpassing its 2007 levels. This begs the question of whether or not this will continue. Although short term volatility is unpredictable, here are some of the fundamentals to consider which should impact prices over the next 12 months: Valuations – If the 30.
The volatility index has gone up as of late and this week’s fluctuation is another example. The fundamentals for US markets are strong and mid to long term, equity investors should outperform those investing in debt. Despite the run up I believe the market is due for a modest correction. You can test your knowledge.
I had a fun conversation with a client this week. Despite holding somewhat defensive investments, we reflected on the natural fears she experienced during 2008. With the significant market rally over the last few years, she was quite upbeat. The psychiatrist in me reminded her that despite learning from this experience, she will likely have.
Over many years bonds have added a sense of security and balance to investment portfolios. As equity returns have not been stellar during the first decade of the new millennium, bond holdings have exceeded the historical average. So far the second decade of the millennium has created prosperity for equity investors. Equity markets have experienced.
In last week’s comments I mentioned 2012 was a strong year for US markets while the Canadian market only saw modest gains. The question I’ve been receiving over the last few weeks is whether or not this trend will continue. The US economy indeed will face long term challenges due to its high debt level..