Commentary on how the Market and the Economy has Repetitive Cycles
We have often repeated that the next economic cycle is upon us, and that the old cycle has run its course.
A Technical Indicator
On January 3, 2014, On Friday, the TSX-Venture composite index broke above the 200 day moving average for the first time since May 2011.
There are many junior stocks that may never recover, but the nes with good value, are to be seriously considered now.
A Commentator Notes
Dec 11 2013 David Ellison’s comments of a few weeks ago when he stated in his conclusions from his recent bank company visits,
- Credit conditions are continuing to improve,
- Loans going on the books the last 3-5 years are the best quality in 25-30 years,
- Loan demand is slowly picking up – starting to see competition,
- Cost cutting/efficiencies are growing mgt. focus – 2-3 years to work through,
- Improving fee income another growing focus of mgt. – loan demand will help this effort,
- Balance sheets are liquid with much improved liability structures – I see some of the best balance sheets of my 30 year career,
- M&A activity expected to increase as regulatory process clears up – everyone is looking,
- Dividends and buybacks are expected to increase,
- Valuations (P/E and PR/BK) are around the average historical ranges.”
Whether or not you agree with the above comments, it is clear that the economy has started to gain momentum. The signs abound. It looks like 2014 will be a good year.
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