Invest in Canada

Markets set to turn corner

by investor on 12/11/08 at 2:19 pm

Markets have bled red since September but aggressive moves from central banks and governments to stabilize the financial system may mean equities have reached a bottom, a new report from CIBC World Markets said Tuesday.

“We are cautiously optimistic that we can ride out the balance of the year without any further systemic shocks,” said Jeff Rubin, chief economist at CIBC World Markets. In the report, he predicts the Toronto Stock Exchange will close the year at 9,500, and end 2009 at 12,000.

Mr. Rubin notes the colossal government cash injections, such as China’s new fiscal stimulus package and another round of stimulus expected from the United States as stabilizing factors. The thawing of interbank lending since the middle of October is also further “easing financial strains,” he said.

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