I have a feeling uncertainty is building up as we enter a seasonally weak month in May. Canada’s GDP shrank in February and we have an upcoming election next Monday where the NDP socialist party seems to be getting more attention. Will markets react negatively to an NDP success hitting the Canadian dollar and equities?
The US GPD number came in lower than expected for Q1 and the outlook for the year has been revised lower. The impact of high oil prices will certainly start showing up in upcoming economic data, isn’t 2/3 of economic activity in the US consumer driven? Earnings season is almost over, we have QE2 ending, continuing debt woes in Europe and more turmoil in the Middle East. Can the US afford QE3? I doubt it.
What an explosive cocktail for investors to digest, I have a feeling investors are just going to use any reason in order to trigger a selloff in the markets. I am currently tracking multiple targets on my radar but will keep my margin free for now in case we get an early summer sell off. On the other hand, I am not a doom and gloom guy, I believe if we do get a correction, it will be a great buying opportunity if you look beyond the summer. What’s your take on the market in the short term?
Economic roundup:
Central Bank Buyers May Extend Gold’s Record Run
US Dollar’s Dizzying Drop Wreaks Economic Havoc
Greek Fiscal Picture Darkens; Bond Flight Continues
Food Costs to Reach a Record High This Year
US Treasury Quietly Plans for Default Crisis
Weekly blog roundup:
Gold, Revisited: Is $1500 Near? @Invest It Wisely (revisiting a great post on gold)
Dividend Yield: Telus Corporation (T) @The Passive Income Earner
7 Deadly Sins of Investments – 7 Investor Common Mistakes @Dividend Guy Blog
Stupidity Unchained -The Curious Saga Of Today’s Stock Market @101 Centavos
The Ultimate Guide to Canadian Deals Websites@Young & Thrifty
Spring Update – 2011 Personal Finance and Investing Goals @My Own Advisor
What is the Difference Between the Federal Reserve and the U.S. Treasury? @DIY Investor
Stagflation in 2011? @Investor Junkie
Couples; To Combine Finances or Not? @Beating Broke
Have a Great Weekend!
Related posts:
