Vancouver Prairie 2 Toronto Prairie 1

Market Volatility – VIX Index


Market Volatility averages 20 over the past 50 years as shown by the dashed green line.  Recent volatility reached values nearing 50+ after a year of below normal volatility in 2017.  From late 2016 to early January 2018, the VIX stayed well below 20 causing investors to become complacent.  Notice that every year shown, except for 2017, has volatility spikes over the average of 20.  Once volatility returned, these investors were affected.   Volatility is healthy for markets: buy low, sell high is difficult to do when there are no lows. (Click on the image to enlarge)



Daily Update – Useful Links


2018 links

Quick reminder that on each web page, the column “Useful Links” contains valuable and timely information.  The “Daily Morning Commentary” contains summary of previous day’s market events local and abroad, global, sector and security recommendations and highlights, earning reports and economic developments.  The “Here’s What We Are Thinking” is updated monthly or as market changes occur and contains insights on stock and bond market events and outlook.  It also provides direction into  asset allocation.  This is one of my favourite pieces as it makes sense of the media hype around stock market events, especially during volatile times.

How vulnerable is the stock market today?


INVESCO Canada Blog:  Insights, commentary and investing expertise by Kristina Hooper.  A short but informative read:  2017 NOV 14 HOW VULNERABLE IS THE STOCK MARKET

North American Free Trade Agreement Update



NAFTA: The US Bite Won’t Be As Bad As Its Bark

A rapid series of talks at three-week intervals to renegotiate the North American Free Trade Agreement (NAFTA) is set to begin on 16 August, the earliest possible date permitted under US legislation, in pursuit of a US administration goal of concluding discussions by mid-December. The compressed timetable implies a hope of achieving a quick deal on points of common interest that can be held up as an achievement that contrasts with the US administration’s delayed domestic agenda—rather than an all-or-nothing wholesale reworking of NAFTA.


With this context in mind, it would be prudent to look through major ups and downs during the coming talks in and instead look forward in anticipation of an eventual accord on a revised NAFTA whose essential elements remain intact. NAFTA is getting tweaked, not ripped up.

Click the link  to download the full 7 page pdf report from Scotiabank Global Economics team:  2017 AUG 14 NAFTA UPDATE


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