US Economy

• Existing Home Sales sank 16.7% in December to a four-month low. Sales by first time buyers plunged to 43% from 51% in November and the University of Michigan home-buying plan index fell for the third month in a row.
• US Private sector is increasing investment in machinery & equipment. Historically, this is the first step toward job creation.
• US Q4 GDP grew at 5.7%, largely due to increases in inventories. The question now is will this continue?

Global

• Food prices in China are rising at nearly 20% year over year. No other issue worries Beijing more than national unrest when people cannot afford to eat.
•  
• India increased cash reserve requirements for banks to control inflation.
•  
• History suggests socialist regimes have chosen not to pay their debt when the going gets tough. So far the principal suspects are Portugal, Italy, Greece, Spain, Venezuela, and Argentina.

For a review to ensure that your portfolio is positioned appropriately for 2010, please Click Here

Angus Watt

Managing Director, Individual Investor Services