Market Update 1017
Main drivers for stock market today was the financial shares and commodity prices. Rising government spending, and low-interest rates are driving the value of dollar down. Even though FED Chairman Bernanke signals that we are tracking for the inflationary environment and take necessary measures to keep it low, the inflation expectation still remains high. And that is boosting the gold prices day after day. I still believe in Philips curve, which states that in the short-term if you drive down the unemployment level, you will have raising prices which mean inflation. So my expectation is buy shares for the companies in precious metal industry and keep them till april 2010.
Loblaw Cos. Ltd. reported 189 M $ Net Income and 9470 M $ Revenue.
Bank of Montreal gained 2.6% on a rating increase
Potash Corp. , the world’s largest fertilizer producer gained 7% after George Soros’s hedge fund increased its stake.