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Archive for 20. May 2009

Look to the Great White North

Reports last week that the recession is draining Social Security and Medicare funds were just one more reminder that the United States needs to fix its finances. For inspiration, why not look to Canada? Long derided by American conservatives as “socialist” and praised by the left for its generous government spending, Canada is casting off those stereotypes. Over the past few years, while U.S. politicians presided over huge increases in spending and debt, the Canadian government tightened its belt, slashed tax rates and balanced budgets. Consider these trends:

David Rosenberg From his New Perch

Economist, David Rosenberg recently of Merrill Lynch and now at Canadian money manager Gluskin Sheff speaks out on how the recent rally was a “suckers rally” and what to do during the next downleg in the market.

He makes the point that the biggest gainers in the recent rally were low quality stocks where the runnup was nothing more than short covering in the DASH FOR TRASH.

He may have a point as the rally seems plump.

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