Investment Advice on the Radio

Markets appear to want to finish the week off in the red. Last week the TSX soldoff and closed at 11,692. This week the TSX rallied to 12,195 and at this point it's stuggling to stay above 11,900. From a technical perspective, the rally looks like it is breaking down. The TSX has just crossed the 50 day moving average to the downside. Markets are feeling ucertain about economic growth in light of the problems in Europe.

With reversal in the stock markets, bond prices are rallying and yields are falling. If the market continues to sell off, bond prices will continue to rally and yields will fall further. Despite this, we expect interest rates to rise in the long term. As part of your fixed income exposure, high yield and emerging market bonds may be attractive alternatives in a rising interest rate environment. For more on alternative investment strategies visit yourlifeyourplan.ca