Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

 

Search Silver Prices
Silver Price
[Most Recent Quotes from www.kitco.com] Our RSS Feed

Silver Updates by Mail

Enter your email address:

Follow Us on Twitter
« Silver Wheaton Corporation Put/Call Ratio | Main | Silver Price Manipulations Appear to Have Failed this time »
Monday
May312010

Canada the Envy of the G7

Canadian Employment and Output 01 June 2010.jpg


In the Business Section of The Globe and Mail yesterday was this assessment of the Canadian economy which is looking very healthy indeed, so the question is will there be a rate increase to combat a perceived over heating of the economy.


The Canadian economy, already the envy of the Group of Seven, is within striking distance of returning to its pre-recession peak.

Fuelled by a hot housing market, a rebounding manufacturing sector, higher incomes and a mini-hiring boom, the economy expanded in the first three months of the year at the fastest annualized pace in more than a decade. The stronger-than-expected 6.1-per-cent rate reported by Statistics Canada Monday was more than twice the rate of growth in the United States in the same period.

The report is the latest in a series of data releases to show that virtually every sector of the economy is picking up steam, and may clinch a Bank of Canada interest rate hike this morning.

Governor Mark Carney is unique among central bankers in the G7 – which also includes the U.S., the U.K., France, Germany, Italy and Japan – in already having to carefully watch inflation as Canada’s economy improves. Mr. Carney’s most recent projections in April showed annual price increases moving past his 2-per-cent target later this year, giving him enough ammunition to signal he was getting ready to raise interest rates as soon as today.

“The need for near-zero interest rates has clearly passed and the last couple of quarters have demonstrated that the emergency situation is over,” CIBC World Markets chief economist Avery Shenfeld said in an interview.

Total gross domestic product is now just 0.4 per cent below pre-recession levels on a quarterly basis, a dizzying rebound from this time last year.

March represented the economy’s seventh consecutive month of growth, Statistics Canada said. The 0.6-per-cent reading for the month implied enough solid momentum for Canadian Imperial Bank of Commerce to boost its second-quarter growth forecast by half a percentage point. Growth on an annual basis between October and December, despite being revised down a tick, came in at 4.9 per cent.

To be sure, economists including Mr. Shenfeld and Philip Cross, Statistics Canada’s chief analyst, said the move back to pre-recession GDP levels is really a technicality, when one considers the unemployment rate is still at 8 per cent.

An enviable situation indeed.



To read the article in full please click here.


Have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.

The latest trade from our options team was slightly more sophisticated in that we shorted a PUT as follows:

On Friday 7th May our premium options trading service OPTIONTRADER opened a speculative short term trade on GLD Puts, signalling to short sell the $105 May-10 Puts series at $0.09.

On Tuesday the 11th May we bought back the puts for just $0.05, making a 44.44% profit in just 4 days.



Accumulated Profits from Investing $1000 in each OPTIONTRADE signal 14 May 2010.jpg

Recently our premium options trading service OPTIONTRADER has been putting in a great performance, the last 16 trades with an average gain of 42.73% per trade, in an average of just under 38 days per trade. Click here to sign up or find out more.


Silver-prices.net have been rather fortunate to close both the $15.00 and the $16.00 options trade on Silver Wheaton Corporation, with both returning a little over 100% profit.

To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address.

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

For those readers who are also interested in the nuclear power sector you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.


PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments (1)

Good news that Canada avoided a complete meltdown of our financial institutions, due to, prudent management and regulation, unlike the US (wild west), Britain and Europe.
We still rely heavily on the US - we just surpassed or are surpassing Saudi Arabia as the number 1 exporter of oil to the US - Personally, I would like to see more trade initiatives with China and India.
We are hopeful of a recovery that includes jobs. Being a heavily based commodity economy, we are bouyed by oil, gold copper, nickel, lumber, wheat, etc., we need to continue diversifying with financial (buying US based banks), and technology i.e. RIM - Blackberry.
All in all, Canada's not perfect....yet! but a very sound and highly regarded country to invest in.
From a biased Canadian in Toronto.

June 2, 2010 | Unregistered CommenterMark

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>