November 10th Edition

Good Morning All,

Markets are soaring around the world this morning due in part to the massive stimulus package in China. This is an across the board advance that includes everything but G.M., which has been downgraded to a target price of zero by one analyst. I say in part, because nothing on a global basis ever happens in a vacuum. My personal bias suggests that this is more a combination of the passage of time that has allowed for the massive liquidity injection to begin to work, the oversold condition of stock and commodity prices and the general uplift in confidence (read hope or relief) that has followed the election of Barack Obama. Never sell confidence short for it is the backbone of all economic progress, be it in currency, in lending or in the general condition of humankind; and such confidence is born of strong leadership and respectful international relationships.

The Premier of Quebec has followed on the heels of his Ottawa counterpart by calling an unnecessary election likely based on the party's fear of an economic meltdown. This is probably bullish news because even though Harper and Charest may be privy to inside economic information, I doubt their ability to call either market performance with any degree of agility. Contrarian that I am, I will take this as a good market indicator. Thankfully too, this election will be over in less than 30 days and it does not appear that the Quebecois are likely to vote against their own self interest in these times of trouble. As I have often said, governing Canada with its vast resources and underpopulated expanses is not a difficult task, except during those times when we have been threatened by separatism and internal mayhem. I do not believe that we are entering one of those.

It is no secret that there are a number of policy issues facing the Barack administration and for want of other subject matter I will attempt to humbly cite my view of the particulars over the coming days. The first and foremost issue at hand is the assemblage of today's team of the "best and brightest" and great promise has so far been shown in this regard. Remember it is all about judgement and I don't see a chance of there being any Sarah Palins in Obamalot.

Note, Stem cell stocks are soaring again on rumours of government support for research. Democrats equal small and mid cap stocks; R&D that means tech, alternative energy , bio science and infrastructure.