AM 1150 Kelowna - Radio Rallies & Reversals

Reminiscent of 2008 and early 2009, extreme volatility in global equity markets has resurfaced over the past several weeks as a result of rising concerns over fiscal situations throughout the European region, signs of decelerating economic growth in China, and also fear of potential conflicts in Korea and the Middle East. Coupled with relatively stagnant labor markets in the US, the culmination of this has led to questions over the prospects for the global economic recovery and the sustainability of the year-long rally in equity markets that began in the spring of 2009.

Longer-term, the global deleveraging process will undoubtedly weigh on economic growth, but at the same time, will continue to encourage accommodative monetary policies. Despite what may be lackluster earnings growth and economic activity, low interest rates will certainly be supportive for equity markets, alongside the fact that many corporations have shored up their balance sheets over the past 12 months through numerous debt and equity issuances.

Consistent with the theme of focusing on defensives, sustainable yields, and strong balance sheets, we have updated our list of Toronto listed companies that have increased dividends since 2008. Visit yourlifeyourplan.ca or give us a call at 1-800-663-2609 and ask us for a copy.

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