K96.3 FM Kelowna's Classic Rock - Radio Rallies & Reversals
Well international equity markets have started off the week closing up over 4% on average, and North American markets have opened strongly in the green. The big story of course is the "Shock-and-awe" trillion dollar rescue package for the EU by the EU. Was last weeks global equity market sell-off a buying opportunity, or is today's rally a selling opportunity?
If there has been one consistent theme for the past two decades, or at least since '08, it's moral hazard. So to answer my question, it's looking like last weeks sell-off has created a buying opportunity, and the run-up since March '09 is still in tact for the short-term. Longer-term, tax payers the world over will have to pay for all this, and with each rescue package, the shadow of tougher regulation and more government regulation grows.
A second opportunity from last weeks sell-off is that bonds yields fell. Mortgage rates follow bond yields, and so perhaps here's an opportunity to lock in at lower rates before they rise again which is likely to happen soon.
GB
If there has been one consistent theme for the past two decades, or at least since '08, it's moral hazard. So to answer my question, it's looking like last weeks sell-off has created a buying opportunity, and the run-up since March '09 is still in tact for the short-term. Longer-term, tax payers the world over will have to pay for all this, and with each rescue package, the shadow of tougher regulation and more government regulation grows.
A second opportunity from last weeks sell-off is that bonds yields fell. Mortgage rates follow bond yields, and so perhaps here's an opportunity to lock in at lower rates before they rise again which is likely to happen soon.
GB
Labels: The Week Ahead
posted by Gordon Bell at
7:52 AM
0 Comments:
Post a Comment
<< Home