18-Dec-2009

10 Second Headlines of the Week 18-Dec-2009

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How our ‘10 Seconds’ fits in with our “9 Steps to Economic Recovery”

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Step 7 – “The Sugar High”
  • Federal Reserve pledged December 16th to hold rates at “exceptionally low levels”
Step 8 – “Hand off to the US Consumer”
  • Obama’s message to senior bank officials: “We helped you, now you help us”
  • The big get bigger – Exxon purchases XTO (natural gas provider) for $31 billion, buying not only resources but technology and the fuel source of choice of future “green” power plants.
Step 9 – “In the Red Zone” Governments force turnover
  • All levels of government look for income – Ontario is considering selling all or part of their crown corporations –> $24 billion?
  • Softer Real Estate prices and lower rents
  1. In Alberta rental vacancy rates are up to 5.5% in October vs. 2.5% last October.
  2. Wall Street Journal – “Are we destined to become a nation of renters?”

Corporate Earnings:

  • Research In Motion and Oracle, beat the street.

PIMCO

  • Increased cash position to 7%
  • Reduced government debt holdings.
  • PIMCO’s hedge fund manager hired by China’s currency regulator as Chief Investment Officer.

For a review to ensure that your portfolio is positioned appropriately for Step 9, please Click Here