November 19th Edition

Good Morning All,

Once upon a time just a short while ago a 150 point upward move on the widely followed Dow Jones Average would have been cause for delight, if not celebration. Sadly, in today's rather volatile markets, it can at best be considered ho hum and at worst anemic. However, as this letter has far too often noted, markets are in search of both a bottom and a reason to put a final one in place. Although the process seems interminable at this juncture and the fear of it not happening palpable, it remains my view that such a turning point is not just inevitable it is close at hand. This is not to suggest that a healthy economy lies just around the corner but resides in a sense that the vast hordes of cash, presently locked away in treasuries and in banks, must be put to work before year end. The increase in the velocity of money will determine the power and the glory of this awakening as the interest in this most important economic factor becomes more reportable. Spend a moment revisiting Economics 101 by way of Google if you have forgotten its meaning.

Many of you must also remember the heady days when our Loonie briefly traded at 1.10 versus its U.S. counterpart and how crossborder shopping and southern vacations once more became affordable. You might also remember that at the same time your energy bill was going through the roof and that your U.S. stock portfolio was down despite the record level of the Dow Jones. A 40% move on the currency you live on versus the one you are invested in will do that; ask the people in Euroland. So this time around watch this trade as it has proven to be even more volatile than the markets and for Canadians that means watching or hedging in commodities.

The Budweiser takeover money got spent yesterday, we await today's driver.....and of course news about Detroit. No wonder the Lions are winless.