Canada - What me, Worry?
"Fee-Only" Portfolio Manager
For Immediate Release
Vancouver, BC (December 05, 2008):
It's a shocker. The numbers are staggering. The US jobs picture is into "ouch land".
You could say, the lights are being turned out. And the prospects are for more darkness.
Nearly 1.9 Million jobs have vanished year-to-date. And this may be an optimistic figure.
Looking at the substantial downward revisions made to the September and October figures leads me to brace for an ugly revision to the 533,000 jobs lost in November.
President elect, Barak Obama has a herculean miracle to perform. No doubt his team is burning the midnight oil trying to figure out what will resuscitate the very sick US economy.
The rest of the world is also affected in similar ways. Canada included.
Brace yourself for central bank interest rate expectations heading toward zero. Wave goodbye to the high yields of yesterday.
However, I fear that we have not learned anything from past lessons on interest rates.
I fear that investors who need income are going to take undue risks in their quest to replenish vanishing yields.
I fear that the number of banks on the FDIC watch list will increase.
I fear that more financial institutions will fail.
We have much work ahead to resuscitate the global economic prospects.
Adrian Mastracci
Portfolio Manager, R.F.P.
KCM Wealth Management Inc.
"Fee-Only" Portfolio Managers & Financial Advisors
Suite 1500, Box 1078, 885 West Georgia Street
Vancouver, BC, Canada V6C 3E8
Tel: (604) 739-4500 Fax: (604) 739-0234
E-mail: kcm@kcmwealth.com Website:
1 comment:
I would say the biggest risk is investing in "safe" long term government bonds at 2 per cent. I expect inflation will show its ugly head in about a year, and those with cash will be able to invest for better yields and huge gains from equities.
All that money created by the central banks will show up eventually, and China is certainly not going to disappear.
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