Market Commentary
A Flight of Capital To Safe Haven
September 19, 2013 | Posted by: Francine Tracey
In times of uncertainty, there is a flight of capital to low-risk investments. Particularly hard capital assets, like real estate. Vancouver markets have been the recipient of such capital flows with global investors active in both residential and commercial markets.
Bernanke yesterday declined to initiate the inevitable reduction in quantitative easing, suggesting that more evidence of firming economic growth was necessary. Just about everything shot higher in the aftermath, TSX, Nasdaq, S&P500 and Dow. But are Bernanke's policies sustainable? Are stock markets headed for another retraction? U.S. policymakers must address debt loads projected to rise later this decade to avoid a 2013 downgrade, according to Moody's.