Chris Kuflik - ScotiaMcLeod Montreal

Until this week, North American equity investors have been living in a utopia. Markets have, for most weeks only moved in one direction - up. In this holiday shortened week, the US markets, after reaching 2 year highs recently, have retreated. The TSX has been spared this decline, due in part to its high exposure to the oil and gold sectors. Will these gains continue or should we prepare for increased volatility and possibly declines?

The old market adage states, "As January goes, so goes the year". This “‘January barometer” states that if markets record a gain or loss in the first month of the year, returns for the year will follow suit.  Is this indicator infallible and can the equity markets continue their assent?