SURPRISE!!

BOC drops the Bank Rate to 0.75%

This is why we want to have diversification and balance in a portfolio!

• All of a sudden, some of the assets in my models (that were least expected to perform) are out-performing!
• Many of these are fixed income assets and some are Canadian Equity assets.
• this is why trying to "pick" investing themes or "time" specific asset trades does not work over the long run.
• Central Banks do not like financial market volatility because it erodes confidence so they will take actions to ensure that investors do not lose confidence: the BOC is no exception, they are staying "ahead of the curve" to try and offset the negative influence of lower oil and commodity prices.

The Theme for my Blog for 2015 

(go back to Jan 2):

"Expect The Unexpected"

• Now it is the ECB's turn to instill confidence