(August 8 – 16:40 ET) – Renowned technical analyst John Bollinger calls the Toronto Stock Exchange a leading indicator for U.S. interest rates.
Bollinger, president of Equitytrader.com and technical analysis guru, appeared on CNBC this afternoon to muse on the importance of the TSE to U.S. investors. After pointing out the TSE’s remarkable performance in the year-to-date, up more than 30%, Bollinger went on to explain that the TSE isn’t the resource-based market it once was, with its recent gains led by tech. However he noted the importance of energy stocks in Canada, a sector that some analysts expect to see drive the TSE higher on the heels of huge profit improvements.
Bollinger also indicated that the U.S. Federal Reserve Board is likely keeping a close eye on the TSE 300 for signs of unrestrained growth and energy-led inflation, suggesting that if the TSE continues to power higher the Fed will be raising rates this fall.
-IE Staff