Real Estate, Fertilizer and Gold

While Halliburton and Hasbro handily beat earnings estimates this morning, a very weak National Association of Home Builders index number has US indices trading marginally up, while the TSX Composite index is down close to 1%. The number came in at 14 from 17 the prior month, and while not quite matching the record low set at the start of 2009, the index was at 70 back in 2005.

The Fertilizer Institute reported North American potash inventories declined 2% in June, are 34% lower than last year, but still roughly 15% above the 5 yr average. Scotia Capital is still bullish on fertilizer stocks, and on balance feels the report is a slight positive for potash, a slight negative for nitrogen, and a mild negative for DAP. Fertilizer stock prices rallied hard on Thursday on the back of increasing grain prices, as: the US National Weather Service issued a forecast of a hot August/September; Hot/Dry weather in Europe is also causing concern; and China is buying more corn.

Finally for all you gold bugs out there, Casey Research released an interesting report on the outlook for gold. If you'd like a copy, ask us at yourlifeyourplan.ca or call 250-868-5525.