Friday morning Investment Advice on the Radio

Markets are flat at the open this morning. Not much news from earnings coming out today however consumer confidence rose in August and consumer prices increased for the 1st time in 4 months in the US pointing to a stabilization that may ease concerns about deflation.
The Economist featured an article this week titled, Stocks and bonds rising in parallel presents a quandary. The analysis points out that a stock market rally arriving at the same time as when bond yields decline suggests that equity investors aren't worried and that bond buyers are either becoming risk averse or expecting a double-dip recession or deflation, according to The Economist. This comes at a time when it is clear that the Federal Reserve's quantitative easing isn't reviving the U.S. economy. "So the bond market is surely betting that the Fed's actions won't work and that Japan is the template; the equity market is betting that the Fed will be successful and the Goldilocks economy will return." The question on investors minds is who is right? The key is to be flexible and active in your investment approach. If you're tired of a buy and hold approach get active and give me a call at 868-5525 or visit yourlifeyourplan.ca.