FED Fails to Inspire

North American stock indices rallied off their lows yesterday after the FOMC announcement, but still finished in the red; However, after sleeping on it, markets have decided that the economic recovery is still in jeopardy of stalling and the FED isn't really adding any extra stimulus. Coupled with recent data that industrial production and loan growth in China are in decline, International stock indices all finished deeply in the red, and North American stock indices aren't faring any better.

In yesterday's 'Casey's Daily Dispatch', the following 'food for thought' was offered:
- Consumer bankruptcies are tracking over 1.6 million this year. That's up from 1.4 million in 2009, which was up 32% from 2008;
- The private sector still isn't hiring and as a result unemployment remains high;
- Food stamp use in the US is on the rise such that over 1/8th of the US population is using food stamps.

Another good read is the most recent 'E-Letter' from John Mauldin, which breaks down US GDP and analyzes where the growth is going to come from; Bottom line - he's sticking with his 'muddle through' scenario. If you'd like a copy of our 'Investment Portfolio Quarterly' ask us at yourlifeyourplan.ca or call 250-868-5525.

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