- 1.1% Growth in GDP in the second quarter of 2017
- 0.9% First quarter of 2017
- 1.9% Increase in Household spending
- 2.3% increase in exports of goods and services
- 65,700 increase in manufacturing jobs, and
- 6.3% unemployment, which is the lowest since 2008
- Hong Kong up by 27.1%
- India up by 21.2%
- France up by 14.16%
- NASDAQ up by 19.4%
- Dow Jones up by 11.1%
- S&P500 up by 10.4%, but
- TSX is down by 0.5%.
There is trouble ahead as strong growth is wanted. In Canada, energy is still in trouble. Our housing market will slow. The NAFTA renegotiation creates uncertainty. Our higher interest rates will hit the Loonie. The overvaluation of the NY market will trigger a sell off.
He thinks that there will be more interest rates rises in Canada this year. He worries about the NY market being really over valued with a P/E Ratio of 24. There is a 10 to 15% correction coming and the TSX will follow.
He says that we should not overweight our portfolio with Canadian stock. We need to diversity internationally. He thinks we should take profits as appropriate and have some cash on hand. It might be good to invest in the EU as their stock markets are undervalues. We could also invest in the Far East. He would stay out of the US market for now.
He would not advise us to bail out of the market entirely. This is never a good idea. No one knows where the markets will go. He has a web site of www.buildingwealth.ca.
On my other blog I wrote yesterday about Smart REIT (TSX-SRU.UN, OTC-CWYUF)... learn more. Tomorrow, I will write about Just Energy Group Inc. (TSX-JE, NYSE-JE)... learn more on Friday, September 15, 2017 befor 8 am.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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