A sloppy overnight and morning session in both Asia and Europe with markets in both regions off. Asia is down about a quarter point on profit taking after a couple of strong days and Europe is off on weak earnings reports. The OECD suggested that the ECB increase the pace of asset purchases to avoid a Japanese style deflationary economy going forward.
The US and Canadian futures are virtually flat this morning with a slight bias to the downside.
Gold is flat this morning at 1272, oil is off a quarter to 93.43 and the loonie is down slightly to 95.85. Bond markets are a little soft this morning with yields in the US and Canada at 2.69% and 2.54% respectively.
Mandate company Home Depot released earnings this morning and beat on both earnings and revenues and provided stronger guidance going into the next year.
Lastly, I will be away tomorrow through Friday at the Pimco Due Diligence conference out west. Pimco is the biggest fixed income money manager on the planet handling more than $2trillion. Most of my mandates hold the Monthly Income Fund and I am looking for more ideas going into the New Year. The conference will be highlighting fixed income themes going forward into the rising interest rate environment that may be coming in the next year and how to capitalize on it. As you are all aware we have had a positive 30 year run in the bond markets and based on the size of the asset class and the weight in most allocation models the impending rise in rates will cause capital erosion and poor returns if simple buy and hold strategies are maintained.
|Kenneth A. Dick, BA, CIM, CFP, FCSI
Branch Manager & Portfolio Manager | Independent Wealth Management
Canaccord Genuity Wealth Management