So many things floating through my head today. Rate cut by the Bank of Canada, Inauguration day South of the border, interviewing potential tenants for a vacant property today, youngest daughter’s birthday tomorrow, learning more about the Tax Free Savings Accounts for an article coming very shortly and half a dozen other things.
So first the Bank of Canada reduced their prime lending rate another 50 basis points or half of a percent. I cannot wait to see the rate decrease letters coming in over the next few weeks. This may reduce a couple mortgages to less than 3% which is crazy. That is effectively like having free money.
Inauguration day should provide a nice temporary boost for the US stock markets and show a very short term surge as people are caught up in the optimism of an incredible historic time in the US. Unfortunately Obama is being handed a country with some severe challenges in front of it and while there is no doubt he will do the best he can, it will be an uphill battle. The excitement and hype from today will flow into the markets and just as quickly flow out which is a great example of how emotional the stock market can be and how it is so out of the average person’s control.
It might create a short term profit for the myriad of day traders out there, but any potential strengthening of the market will quickly disappear as reality of the economic crisis continues on down there. 2009 will continue to be a long year for the markets with some people predicting we haven’t seen the bottom yet.
I have received quite a bit of interest regarding my post about Tax Free Savings Accounts, so watch for information on that very shortly.
Happy Inauguration Day
Interesting thoughts. Yes lots of hype for Obama and tremendous expectations seem to abound.
Happy B-day to your daughter!!
Paul