margin problem

The food prices are up, import prices are up and most commodity prices are up. All these present a serious problem for corporations, which is margin squeeze. The weak economy can not bear the price increase so the companies have to absorb the input prices inflation. On the other hand, the relative strong global growth will keep commodity and other import prices on a slow upward trends.

The Potash news has pushed TSX to the high end of its trading range. I will look for opportunity to short it. Canadian banks will have a slow profit growth quarter.