TSX Real Estate, Gold, Energy, Financial Services Indices and CRB
The chart above shows the S&P TSX Real Estate, Gold, Energy and Financial Services Indices as well as the Bank of Canada Commodities Index (CCI) all valued in CA$. In April 2013 Gold slumped again and for the first time since November 2008 it dropped decisively below the energy and real estate indexes barely above the financials. The Bank of Canada Commodities Index has been rising on a slumping CAD/USD pair as the U.S. Dollar rally puts pressure on a lot of orthodox positions. We should note that March 2013 is when the Eurozone introduced its bank "bail-in" template for Cypriot investors. In common parlance, bank accounts are akin to a Bernie Madoff deposit scheme. Will Canadian asset prices be jacked up via Eurozone capital flight as it has with the Asian carry? It is showing up at the whale level. On the other side, one feature of a massive global post bubble deflation is debt revulsion. In Japan during their decades long contraction, savings increased as investors repaired their balance sheets. These are volatile times.