View from Toronto: Global Bonds Still Expensive

07/12/2017 2:59 am EST

Focus: STRATEGIES

Ziad Jasani

Managing Director and Partner, Independent Investor Institute

Global bonds may see rising yields, while global commodity markets are waiting to bounce, asserts Ziad Jasani, of the Independent Investor Institute, in his weekly Trader video.

Global equity markets started the week (July 10) staging a minor bounce back to all-time highs (US and Growth-led).

Global bond markets still relatively expensive with rising yields likely to pause at resistance.

Global commodity markets are waiting on a bounce.

Broad decisions: Hold for mid-to longer term equity positions, look-long (Buy) short-term.

Implications for U.S.: S&P 500 remains in the consolidation band 2,440-2,415 with better odds testing at the top. Growth out-performs: Technology, Industrials, Discretionaries. Financials stagnate at highs. Materials/Mining wait for a bounce. Defensives (including Bonds) get a bounce. Energy deeply over-sold with a technical bounce expected.

Implications for Canada: Toronto Stock Exchange (TSX) holds support at 15,025-14,950 and attempts to bounce back up to 200-Day Average. Financials hold up better with a chance for a limp-out above resistance. Energy and Materials try to find a bottom. Defensives get a bounce.

Review our Market Strategy Update (recorded July 10) below.

View the latest video from Ziad Jasani of the Independent Investor Institute here

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