Why the BoC won’t raise rates until October...
Central bank may still hike rates before summer...
Above are two recent articles stating opposite points of view. If experts can’t agree on what interest rates will do, how are your clients supposed to decide which product to choose?
Here's one simple solution...choose both! Separate yourself from the heard by offering your customer something their Bank won't or can't.
The MERIX 50/50 is a Wise choice in this market...the cash flow benefits of low ARM rates with the added security of fixed rates.
* TSX -246.13 to 13,638.58 as disappointing trade data from China raised worries about the strength of the world's second-largest economy and sent prices for oil and metals sliding. China reported a surprise trade deficit of US$7.3 billion in February as surging prices for oil and other commodities pushed up its import bill. Economists had expected a US$4.9-billion surplus. Additionally weekly US jobless claims took an unexpected jump.
* DOW -228.48 to 11,984.61 The European debt crisis also weighed on markets after Moody’s downgraded its credit rating on Spain by one notch to Aa2. With trouble across the Middle East, the ongoing woes of heavy debt and restructuring in Europe and now the one shining beacon of light, China, is showing some signs of pausing.
* Dollar -.73c to 102.50c USD as soft commodity prices helped push the Canadian dollar down.
* Oil -$1.68 to $102.70USD per barrel amid unrest that has toppled governments in Tunisia and Egypt and sparked heavy fighting in Libya. There are fears such upheavals could spread to oil producers in the Persian Gulf, particularly Saudi Arabia , where police reportedly opened fire on protesters at a rally in the eastern city of Qatif on Thursday. Meanwhile, Libyan rebel forces beat a retreat from the strategic oil port of Ras Lanouf on Thursday as the army of Moammar Gadhafi army pounded the town with artillery. Today will show effects of a massive earthquake and tsunami struck which Japan, triggering knee-jerk flight to safety selling in regional markets as well.
* Gold -$17.10 to $1412.50 per ounce as gold stocks also sold off.
* Canadian 5 yr bond yields markets -.08bps to 2.67. The spread (based on the MERIX 5 yr rate published rate of 4.14%) has now settled into the middle of the comfort zone at 1.47.
(courtesy of Barb Morgan, DBD Ontario Southwest)
