Market News
- Horne says extreme spread levels need to narrow if markets are to improve.
- Current spreads are not reflective of normal default rates, says Horne.
- Horne reports overnight lending rates have dropped.
- Horne says global equities are down 50 percent from their peaks and have discounted a worst case scenario.
- Canadian equities are different because commodities peaked in July and earnings held up longer, says Horne.
- Horne reports Bissett managers are finding very attractive valuations and are slowly averaging into equities.
- Horne is also adding to U.S. equities because markets typically improve before the economy by at least six months.
- Corporate bonds are very undervalued compared to government bonds, says Horne.
- Horne says further downside in yield on the short end is possible if the BoC and Fed cut rates.
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