Safe as houses? That loud knocking is falling prices...
Somewhat alarmist in tone, but I think the following sums it up from Will Dunning:
“I’m not in the camp that says we have a big correction coming, but I think we are looking at a fairly long period of moderate changes in house prices – plus or minus 2 per cent...”
• TSX +1.78 to 13,909.10 as investors weighed a drop in commodity prices against a long list of earnings reports from both sides of the border.
• DOW +115.49 to 12,595.37 hitting its highest level in 3 years
• Dollar +.30c to 105.06c USD after hitting its highest level since 2007 with stronger commodity prices and as traders awaited word from the U.S. Federal Reserve on interest rates and the state of the world's largest economy.
• Oil -$.07 to $112.21USD per barrel
• Gold -$5.60 to $1503.50 per ounce
• Canadian 5 yr bond yields markets -.06bps to 2.59. The spread (based on the NEW MERIX 5 yr rate published rate of 4.34%) is above the comfort zone at 1.75. Using the unpublished specials, with the recent decrease to the 5 year fixed to 4.09%, the spread there is reduced to 1.50.
