Major News this Week : September 03, 2013

Last week was marked by fears of the U.S. staging a military attack on Syria. Currency, commodity, stock and bond markets may be volatile over next few months because of several factors: political tensions in the Middle East, the U.S. Federal Reserve should begin tapering its bond purchases over the next few weeks, the U.S. government’s debt ceiling and budget will be back in the news, and the massive devaluation of many emerging market currencies. Given this volatility looming ahead, you may want to take advantage of the end of the vacation period to place orders with your trader and review your hedging strategy. Have a good week! Philippe Shebib

The Loonie
“Every choice you make has an end result.” Zig Ziglar

In the next few months we will see the end of another chapter of history: on January 31, 2014 Ben Bernanke’s mandate will end, after eight tumultuous years at the head of the Federal Reserve. Within the next few weeks, President Obama will need to make the difficult choice of naming a new head of the U.S, Federal Reserve. Independent of who is chosen, one thing is certain: the new Chairman will take over the reins in a challenging environment in which the economy is struggling to reach pre-crisis levels and exceptional expansionary measures affecting all asset classes are supposed to be gradually withdrawn. At this time, two potential candidates have been identified to replace Dr. Bernanke: Janet Yellen and Lawrence Summers. Both are academic economists, and they offer slightly different track records that are equally impressive. Who best fits the bill depends on whose survey you consult, but a recent Bloomberg survey of 63 economists found that 65% favoured Ms. Yellen. Paddy Power, an online betting site, gives Mr. Summers 66.7% odds and Ms.

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