Investment Management and Financial Planning Thoughts

This morning the Canadian dollar pushed through par again but has slipped back. A couple of things are contributing to this. Building permits came in weaker than expected, the U.S. dollar is gaining strength and oil is off a bit.
In stocks, worries over Greece and rising bond yields are causing my screen to be red.
In Canada, it appears inflation is worriesome. Rates could rise as early as July, however in the U.S. the Fed Speak is "conditions warrent exceptionally low rates for an extended period of time". Most analysts are looking for rates to rise in 2011 in the U.S. Although we don't know the timing of the hike, we know where to look for signals and it's in yields. Research by RBC suggests that 10 year bond yields tend to rise 3 months prior to a 1st rate hike and continue to rise thereafter. Interestingly the S&P 500 also rose in most cases prior to and after rate hikes. Both Credit Suisse and RBC research supports this. For more info on this visit our Blog at yourlifeyourplan.ca.