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Written by David Rosenberg - Gluskin Sheff
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Monday, 01 November 2010 08:02 |
• While you were sleeping: the risk-on trade is on again; the catalyst, news that China’s manufacturing sentiment index rose in October
• A big week ahead in the U.S.: we have the mid-term election results on Tuesday, the Fed press release on Wednesday and October nonfarm payrolls on Friday
• Big money! Barron’s Big Money Poll shows that 62% of PMs in the U.S. see equities as the top performing asset class in the next 6-12 months, not only that, 70% see little chance of another economic expansion — this is otherwise known as the herd mentality
• Deflation, not inflation, is the primary risk in the U.S.
• Notice the NYT’s conclusion about 3M’s results and also the word “price cuts”?
• The retail investor shuns the new Fed-led bubble: despite the rally in the equity market in October, retail investors continue to pull money out of their equity mutual funds
• Problems re-emerging in France
• Canadian GDP a treat; however, we continue to believe that the economy faces many headwinds ahead
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