Monday August 16, 2010 - Morning Radio Advice

Markets are flat to start the week. Japan came in with lower than expected growth numbers which is affecting markets worldwide. The TSX is being weighed down by lower oil, however that is offset by gold. Earnings reports are winding down so the focus has shifted to more macro news. Some news that may drive the markets this week. Today, manufacturing numbers are out in the US. Tomorrow, housing starts and industrial production in the US and manufacturing shipments in Canada. Later in the week, leading indicators in the US and Canada, along with CPI in Canada.

Investment Pitfalls & Opportunities was the feature article in the recent Scotia Outlook. Investors have avoided equity funds in favour of money market, bonds or balanced funds in the last couple of years. This behaviour is not consistent with previous up markets where investors pile into equities. Not only do investors have a reduced appetite for risk compared to previous periods but they are reacting more quickly to negative market activity. This week I am going to highlight some investment pitfalls along with what does work in this environment. For a copy of the outlook call me at 868-5525 or visit yourlifeyourplan.ca.