Quote:
Originally Posted by Slava
This is a complex situation to review in a thread, but basically to answer some of your questions from the initial post:
1. Interest rates are predicted to drop now rather than go up as was initially projected by many analysts. The drop in rates would be to spur the economy again.
2. I would think that a recession is unlikely; specifically for Alberta. Ontario and Quebec would get hit harder and faster. Canada's economy is strong enough though that it is quite possible to go through this without much harm.
3. This is a great time to invest. There are a lot of holdings which are dropping right now for no good reason. I saw one analyst say that "they are throwing the baby out with the bathwater" and he couldn't be more right. Over the past few weeks earnings were very high for a number of large corporations here in Canada. When earnings are high, the stock prices will follow.
4. If you are properly diversified right now, the best thing to do is wait it out or put more money in. Things will recover, and even in the US the economy is fundamentally strong.
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1. Really? First I heard of this. So, the real estate market will be hot again???
3. You think so hey? I was going to invest more into MFs at the end of the year, but maybe I'll do this sooner rather then later