Investment Management and Financial Planning Thoughts

Markets are starting the day off in the red. Despite this energy, materials and the Canadian dollar are all higher and we are seeing sizzling growth in Canada which puts pressure on the Bank of Canada to raise rates. Yields on overnight index swaps which trade based on expectations for the Bank of Canada's key policy rate, suggest the market sees the tightening cycle starting in July. In the U.S. we had lower than expected jobs numbers in March. An interesting article in my CFA Newsbrief from the Washington Post said there is an increase in productivity in American employees. Business's are producing 3% fewer goods and services yet Americans are working nearly 10% fewer hours due to layoffs and cutbacks. This has the potential to stiffle hiring and keep the unemployment rate elevated. Further fuel for a muddle through economy as John Mauldin puts it.