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Strategies & Market Trends : Canadian Options

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To: Jan Johnstone who wrote (478)5/25/1997 9:47:00 PM
From: Dave.S   of 1599
 
Jan:

Things cannot be better for the TSE at the moment:

- low inflation

- interest rates lower than the US

- low Canadian dollar

- strong corporate earnings

- Bloc Que. losing support

- almost certain Liberal majority

- Resource sector strong due to booming Asian and US economies

- Baby Boomers reaching peak earning years, all own their own homes and cottages - no other place to put their money but stocks

The market will make a major top after the election results are reported. Be sure to sell on the news before everyone else does. That is, get out on a market order at the opening. This happened in 1988 after the Conservatives won. The market opened extremely strong then sold off for many days. Always sell on news after a big runup in anticipation!

Dave
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