Friday, November 20, 2009

credit spread

The credit spread between Treasury bill and corporation debt has narrowed dramatically over last 6 months, which indicates the market has confidence in corporations' balance sheet and their abilities to generate cash. This is a bullish sign. My sense of the market is any correction in short term will be shallow. The long term outlook, however, is not favourable.

Will sell FMC (C$) at 19.

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