Chris Kuflik - ScotiaMcLeod Montreal

 Politicians in Germany and the U.S. are rushing to change capital market regulations this week. They are pandering to populist outcries against the bailouts of their financial institutions. Elected officials are looking for a quick and simple solution to quiet their people down; unfortunately most politicians do not understand how capital markets work. Their ignorance has been a disaster for global markets this past last week. Their political moves could lead to lower returns and higher costs for Canadians, even when markets improve.

This last week tested our resolve on two fronts. The first involved the Montreal Canadiens’ second seven game series victory against another team that was supposed to quickly eliminate them from the play-offs. Their play-off miracle continues. The second test involved investors’ confidence. With the rapid decline in the major markets worldwide, and subsequent partial rebound, have we been given the signal to initiate new purchases?