Severe Recession in US? NOT!CIBCTuesday, December 11, 2007Don't...

Severe Recession in US? NOT!

CIBC
Tuesday, December 11, 2007
Don't believe Wall Street: the U.S. economy is poised to speed up again next year, providing the Federal Reserve Board comes through with some more rate cuts, starting today, and this will mean more record highs for Canadian and U.S. stocks.

Indeed, Canada's benchmark S&P/TSX composite index should end next year at about 16,200 points, according to Jeff Rubin, chief strategist and economist at Canadian Imperial Bank of Commerce in Toronto. Rough calculations show that would be up about 16 per cent from current levels and nearly 11 per cent above its record high of 14,625 last July.

However, moving another chunk of your portfolio out of equities and into bonds would be a smart way of helping to ride out the storm in the meantime, Mr. Rubin said Tuesday in a news release accompanying CIBC's latest monthly Canadian portfolio strategy report to clients.

“U.S. Main Street is fundamentally a lot healthier than Wall Street would have you believe,” he argued.

Mr. Rubin is betting on a two-quarter U.S. slowdown that will be “contained” by more Fed rate cuts and set the stage for a resumption of the bull market for North American stocks, “especially the resource and energy rich” Toronto Stock Exchange.

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This from CIBC's chief analyst. CIBC wrote literaly $billions down on sub prime fiascal.

RESOURCE AND ENERGY RICH STOCKS = BULL MARKET