Bank of Canada Rate Hike

[errolanderson]

It's beginning to sound like both the U.S. Federal Reserve and the Bank of Canada may suspend further rate hikes in 2017. Many retail bankruptcies stateside right now, consumerism and housing appear slowing. Cdn 4th quarter GDP may slow considerably in the 4th quarter (in our view).

But Dow Jones may mark its 42nd historic record high for 2017. Investors remain uninspired over these amazing central bank manipulated U.S. equity market gains. Now the Fed will possibly announce the beginning of the massive unwind of the balance sheet (selling bonds). This will be an incredible financial market balancing act by the Fed not to knock over the apple cart.

VIX (volatility) remains spooky quiet. Some observations . . . .

[danny W1M]

The VIX that I've been following, not long ago split again, 1 for 4 ! Not 4 for 1, but 1 for 4.

Hitting record low again after signaling a triple bottom at the end of July/early August.

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[errolanderson]

quick update . . . Fed minutes released at noon.

No rate hike now, but Fed governors talk of three (3) rate hikes in 2018. Go figure.

Fed will begin unwinding balance sheet starting October (selling bonds) . . . $600 billion per year.

Loonie getting pounded right now as result of potential U.S. rates hikes into 2018.

Dow Jones yet another record high today . . . .