TSX INDEXES for Energy, Real Estate, Financial Services, Gold and the Bank of Canada Commodities in $CAD
In March 2017 the Canadian commodities index (red plot line) is having a problem getting energized after 3 months of trying to break out to the upside just a few steps off the bottom of a 12 year channel support. Has the recent energy sector excitement been muted from all the trumpeting below the border about energy independence? Good luck with those coal mines; do I smell musk?
Have The Majors Given Up On Canada's Oil Sands? Zero Hedge FEB 27, 2017
All Cars In Norway Will Be 100% Electric By 2025 WCCFtech FEB 23, 2017
Tesla Quietly Introduces Longest-Range Electric Car on the Market Fortune Autos JAN 22, 2017
Norwegian giant pulls out of Alberta's oilsands National Observer DEC 14, 2016
All new cars mandated to be electric in Germany by 2030 ELECTREK JUN 14, 2016
India joins Norway and Netherlands in wanting 100% electric vehicles RENEWeconomy APR 4, 2016
California wants 100 per cent electric car sales by 2030 The Irish Times AUG 24, 2015
The relentless energy sector downtrend (black plot line) since the manic high of July 2008 and the growing U.S. currency strength is keeping a check on CCI advances. Anxiety has amped up with rising interest rates and the Gold sector looks to be breaking out above its 3 year bear market channel.
Is this a prelude to a plunge? In 2007 financial fears and energy anxieties had real estate appraisers dusting off their calculators and adding the income approach and replacement calculations back onto their comp-heavy arguments.
Recent warnings of credit tightening and a Yield Curve reversal (Credit Markets Bob Hoye JAN 27, 2017 means that the competition for other people's income will become cut throat as asset values get repriced.
Comparative analysis becomes moot in a no-bid-thin-bid market and gives way to fundamental and financial analysis when looking at physical assets.
The Commodity Index since the dotcom bust rallied regularly out of the fall (Polar Vortex etal) But since 2014 the index has turned into a DEFLATION ENGINE which heated up central bank anxieties and prompted a politically motivated second Canadian rate cut in July 2015.
Another Canadian cut is not likely with the new Liberal federal mandate that wants to try fiscal stimulus instead of pushing monetary policy which has failed at stimulating the "job creators".
The chatter about more U.S. Fed interest rate hikes is now moot with the Trump Presidency according to Bill Conerly at Forbes DEC 15, 2016 and Central bank chief (Janet Yellen who) says pace of rate hikes will accelerate from last two years Market Watch MAR 3, 2017