Today's Investment Advice on the Radio

Markets are colorful at this point in U.S. and Canada, moving back to red from green. They started the morning off in the red on disappointing jobless claims and a rise in home foreclosures in the U.S. Apparently 1 in 138 households received default notices or were repossed by banks in the U.S. according to RealtyTrac. Much different story in Canada. A housing report from Royal LePage showed some major housing markets in Canada are overheating with prices rising about 20% in the 1st quarter compared to the national average of 10%. In China they are moving to tighten lending conditions due to strong growth. It will be interesting to see what the Bank of Canada does next week when it meets. Scotia Economics believes rates could start to move higher as early as June and Scotia Capital is forecasting the overnight rate could rise from .25% to 1.5% by the end of 2010 and 3% by the end of 2011. For more on managing your money in a rising interest rate environment visit our blog @ yourlifeyourplan.ca.