Wednesday Morning Radio Advice

News of a disappointing durable goods order and sales of new homes in the US dropping 32% from last year is weighing on markets. The Dow dipped below 10,000 this morning and the TSX is trading around 11,500. Both markets are moving back to the green from a deep red start. The TSX is getting some support from financials after CIBC surprised to the upside and gold is higher. The Canadian dollar is lower but seems to be finding some support at 94 cents.


While 10 yr US government bond yields continue to fall below 2.5% corporate bond yields may be rising again. The Markit CDX North American Investment Grade Index of credit default swaps tied to 125 US and Canadian companies rose significantly. This measures the extra yield investors are willing to pay to own corporate bonds over treasuries and tends to rise when investors become more risk averse. Scotia McLeod came out with an updated Guide to Fixed Income Securities. For a copy give me a call at 868-5525 or visit your life yourplan.ca.