Archive for May, 2009

Pound Falls against Dollar, Euro as Bank of England Will Buy More Assets

In the past week the major economic developments in China included comments on monetary policy by the PBOC, stats showing the CLSA PMI rising above 50 in April, estimates that new lending in April was over 600 billion yuan, and revelation that China passed the US as the top ranked trading partner with Brazil.

These are difficult economic times, with the Canadian economy being buffeted by an intense and synchronized global recession. In recent months, that global recession has been exacerbated by delays in implementing measures to restore financial stability around the world.

The world economy is currently experiencing its steepest downturn since the 1940s, with global trade expected to contract by 10% this year, see chart a. Global economic output could fall by 2%, with growth in the advanced economies dropping by at least twice this rate, around 4-5%.

Dear Trader,

TSG Stock Market Letter
Week Ending May 1, 2009
Topics Discussed This Week:

* Rally re-ignites?
* Leaders fall behind...
* Earnings forecasts still looking bullish but...
* Case-Shiller shows prices still declining but at slower rate
* Comparing rallies
* Elliott Wave SPX Perspective

This marked the eighth week that stocks have rallied ...