AM 1150 Kelowna - Radio Rallies & Reversals

Once again a reminder that World Cup Soccer action gets underway tomorrow. If you're an iPhone user, you can follow all the action with the app '2010 World Cup South Africa' or if your a blackberry user, you can follow all the action with the app 'South Africa for Blackberry', and as a disclosure, we own both Apple and RIM in our portfolios.

The early news today is the decision to leave policy rates the same by both the ECB and the Bank of England at 1% and .5%, respectively. No surprise there, but coupled with strong trade numbers out of China and Canada, and an up-beat economic forecast by RBC, global equity markets are all in the green today. North American equity markets have so far regained what they lost in the last half hour of trading yesterday.

But before you get too excited, BMO's quant desk says: "sell all your equities and move to cash." They say: "The global credit environment is worsening. Cost of capital is going up and availability is going down. There are large gaps between where the credit market prices risk and where the equity market is priced. Equity is lagging the deterioration in credit conditions."

So if you're wondering what to do, tune in at 12:13pm and I'll share some words of wisdom by the 'Oracle of Omaha', Mr Warren Buffett.

GB