Weekly Economic Commentary
** Economic growth appears to be firming—led by manufacturing activity. The chances of a double-dip look slim.
** We think bond yields have begun to move higher and we are sticking with our forecast of a 5% ten-year yield by year-end.
** The stock market has continued to grind higher and profit growth has been strong. We are sticking to our target of 1,250 on the for 2010.
** We remain neutral on corporate credit and bearish on mortgages. Mortgages have yet to wake up to the absence of the Fed as a buyer.
** We are still bullish on commodities and gold and continue to like Asian currencies and commodity currencies—especially the Canadian dollar. So far this year, however, the dollar has outperformed our expectations as fears over Greece have weighed on the Euro.
Source RDQ Economics