Focus: Canadian Large Caps and International ADR's
MARKET OUTLOOK:
We would like to remind everyone Apple has more cash than Greece has GDP. Do not lose focus on the bigger picture, the global economy is improving, and this is a hiccup of uncertainty. Greece cannot cause a contagion and hurt Europe further because the debt is consolidated into safe hands, it is merely a distraction. We have to take a step back and look at the moment of peak irrationality which occurred over the first half of this year. The bond markets have become so inflated that in some markets investors have actually invested in bonds with negative yields. This means investors have paid a government to loan that government their money. It is difficult to comprehend that investors willingly invested in losing investments, in order to secure safety. The bond market changes are causing the stock market to undergo a major transition. As the bond market begins to sell off, the income earning stocks within the market are joining in this sell off. The 20 Year U.S. Treasury is selling lower over the year, taking with it, the ZUT- utility ETF made up solely of income producing stocks. We think we are in the early stages of this correction and investing in Income is no longer safe. We still believe money will continue to flow into the stock market, but investors must be in the right investments within the stock market. We must move forward, and we believe the safest way to invest is in earnings growth. (more)
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