AM 1150 Kelowna - Radio Ralies & Reversals

First of all, a reminder that if you're looking for Canadian and US companies with solid balance sheets and a reliable dividend, both Scotia Capital and Credit Suisse have reports out with their top picks. If you'd like a copy, ask us at yourlifeyourplan.ca or call 250-868-5525.

I finally got a copy of Don Coxe's latest Basic Points - Always and insightful and entertaining read. Over the next couple of days I thought I'd summarize some of the key points, starting with the Euro - According to Don, the problem with the Euro is that: "There's no nation or economy standing behind the paper currency - just an international committee of bureaucrats which can only enforce its decrees against its members with their consent. It is little more than the currency equivalent of the United Nations - a good idea, perhaps, but you might not want to bet your personal wealth or pension fund on it."

The implications are that: "panicky global investors are rushing from euro denominated debt into Treasuries, which is great news for Messrs. Obama and Geithner in their roles as the world's biggest issuers of new debt, but it's terrible news for them in their roles as managers of the economic recovery, where exports are a key component based on dollar weakness.

GB