Thursday 14March2013 - Opinion That Matters!

From the Odlum Brown March Investment Advisory by Chris Tidd.

"From the chart below it appears to me

that the pivotal month in 2013 is likely to
be May, as depicted by the arrow. Most of
you have heard the expression “Sell in May
and go away”; that looks to be the mantra
for 2013. While there will be speed-bumps
between now and then the indicated
market top in May suggests the end of any
upward movement for several months, and
the implication of this chart is for a
sizeable correction. At this juncture this
possibility is guiding our thinking."

"We are taking the capital preservation mode rather than the

wealth creation option. Getting to the last quarter of 2013

with one’s capital intact is our principal objective. The vast

majority of recommendations made in this letter fit the mold

of capital preservation, while still getting paid.
Interest rates are currently one of the major talking points;
that is, how long can they stay this low? In my opinion they
will stay this low for quite a while yet, probably well into
2015. If we are to believe Mr Bernanke, the head of the US
Federal Reserve, he has no thought yet about taking his foot
of the money-printing pedal, as he stated in the Senate
testimony hearings last week. He will continue the
approximately $100 billion a month buy-back programs he
initiated last Fall. Those programs alone assure us of
continuing low interest rates. Furthermore, until he takes his
foot of the pedal, nobody else can either. The Bank of Canada
has been threatening such a move for almost two years. As
we see it Canada cannot go first on its own. From an
investment standpoint this translates into stable (if not
improving) bond prices and preferred prices."