"Do you know if more rate hikes are widely expected in Canada? It seemed to me
that Candian short rates had no where to go but up."
I don't think so, at least they aren't widely expected. We have a much higher rate of unemployment than in the US, and the recovery here is just getting going. The central bank here is as separate from political fiddling as in the States, and acts only on economic data, which doesn't seem to warrant serious increases right now, imho. At 3.5, the rate is still pretty low, it really was only to support the C$, imho.
"... may hurt the interest rate stocks like banks."
Not so much, banks can move their spreads to suit the rate, they can be less vulnerable than direct interest-sensitives like utilities. LB and CWB are both known for positions that would do better, not worse, in a moderately higher rate situation. It depends on the specific bank, I'll see what I can dig up on TD in that regard.....
Anyway, with summer coming, there could be a little dip coming up no matter what the rate, the time for changing horses is running out, a spare horse named Cash could come in handy....<g>...... |
