New initiatives set stage for economic recovery
In the last quarter of 2008, equity values declined significantly as a financial market storm was unleashed worldwide.
During the first quarter of 2009, the S&P/TSX Composite was down 3%, while the S&P 500 dropped 11.7%. Both North American markets hit new multi-year lows in early March before staging impressive rallies to close the quarter.
The economic news continues to be poor, especially with regard to unemployment and confidence, but we are seeing some of the first pieces being picked up in the US housing market as mortgage rates are now below 5% and some inventory is being cleared. The new US administration is taking the lead in the rebuilding effort, in conjunction with the Federal Reserve, and we expect their efforts, coupled with the continued co-operation of other developed nations’ governments and central banks, will position the world’s economies for recovery in the next 12–18 months.
READ MORE. LEON FRAZER QUARTERLY REVIEW, Q1 2009