1. The Loonie:
The CD is looking surprisingly strong since the new year began, rising 6.3%. Our loonie buys 76.8 cents US. according to the Globe and Mail of April 8th 2016.
What I find most interesting, is this strength comes despite the continuing issues within the oil patch. Once oil rebounds, we will see a much stronger CD.
Furthermore, speculators, according to Allison McNeely at the Globe and Mail, are slowly becoming more positive on the CD which bodes well for the longer term.
2. Employment:
Today, according to Statistics Canada, employment increased by 40,600 jobs in March exceeding all 21 economic forecast in a Bloomberg News survey. Strong employment, assuming it continues, coupled with higher inflation, will be the recipe that triggers higher interest rates. Having said this, I do not believe that we will see higher rates this year.
3. Politics:
South of the border we continue to see the silliness surrounding both the Republicans and Democratic election process. What is interesting, in my humble opinion, is that at the very least, much of this campaign is being waged on corruption, especially some politicians taking money from Wall Street, without which, could not afford to run for President yet they claim they will fix the system.
These are the same characters that caused you and I so much pain in the last decade. It should become even more of a circus moving forward.
LIVE WELL. INVEST INTELLIGENTLY.