Is the worst really behind us? The Financial Post published a report on Tuesday November 11, from University of Toronto economists which summarize well what we have been reading and hearing from the past few weeks regarding the current state of the World economies. They report that “the World Equity markets are likely near their bottoms”. Here is why, and I quote:

  • The credit crush appears to be receding after the extraordinary measures taken primarily from the USA but everywhere around the World.
  • World Equity markets appear to have stabilized
  • Markets for commodities particularly oil also appear to have stabilized at prices that are probably too low on a long-term basis
  • The Canadian dollar appears also to have stabilized and will likely remain roughly in the US 85cents to US 90cents range over the next year and gradually appreciate as world economic markets begin a serious recovery late in 2009 and into 2010.

Although they do not predict a quick recovery, they do forecast a marginal growth rate in 2009 and a strong expansion in 2010.

CIBC World Markets’ chief economist Jeff Rubin, reports the same today. “The remainder of 2008 should pass without another major meltdown in the equity markets”. He is cautiously optimistic and feels that the market has bottomed out.

I like the sound of the words, bottomed out, recovery and expansion! The key here is that there is light at the end of the tunnel. I would consider this as a Buying Alert! 

I was seldom able to see an opportunity until it had ceased to be one.  ~Mark Twain