Tuesday Investment Advice on the Radio

Stocks closed at their highest level since mid May yesterday after the National Bureau of economic research called an official end to the recession. Despite a strong reading on US housing starts in August, North American are lower at the start of trading today. Investors are hesitant to place any bets ahead of any statements from the U.S. Federal Reserve. US markets are flat at this point and the TSX is down by about 1/2%.

The risk of another recession is unlikely according to CNNMoney.com survey of leading economists. They gave it a 25% chance which is up from 15% six months ago. While the risk is rising it is only 1 in 4. As I said yesterday, famed economist Paul Samuelson said that the stock market predicted the last 9 of 4 recessions. The point being, in the short term the markets are always trying to predict what the economy is going to do and the two aren't always in sync. The key is to buy good companies. To invest in good companies call me at 868-5525 or visit yourlifeyourplan.ca.