Investment Advice on the Radio

Canada became the first G7 country to raise it's key interest rate. It now stands at 1/2%.
Scotia Capital issued a report this morning saying the markets view this as a neutral bias which is probably the right move given our strong economic growth offset by market uncertainties. That also makes its next move unpredictable. Markets view this as a lack of clarity which intially sent the loonie lower. It was trading below 95 cents US this morning, but has rallied back.
May was a tough month for stock markets. The TSX was down 3.5%. The S&P 500 was down 8% and the EAFE dropped 12%. The EAFE is a measure of International stocks in Europe, Australia and the Far East. Despite challenges to the markets we are still seeing signs of economic recovery. This morning, markets were higher in the U.S. on positive ISM and construction data. They are pulling back a little and the TSX is currently flat. Our next Rallies & Reversals event is this Friday where we will feature a talk on HST and your investments at yourlifeyourplan.ca.