you need to be prepared for strong fiscal policy response if deflation continues

Yesterday morning, Statistics Canada reported that we still see signs of deflation. If deflation remains an issue, it will definitely affect investors, as it has a negative impact on consumer behaviour, and therefore on most stock prices. On the positive side, it makes it likely that the Bank of Canada will remain committed to low interest rates, in the interest of spurring growth. Regardless, deflation is much more problematic for global central banks than mild inflation, so you need to be prepared for strong fiscal policy response if deflation continues. If you are unsure if your portfolio is prepared for a deflationary environment, perhaps it is time for a second opinion

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For a review your portfolio, or a complimentary copy of my CD, visit, www.beyondfunds.ca or call me, Jeff Wareham, at 519 660 3260. This program is for information purposes only. Fees, management fees and commissions may be associated with mutual fund investing. Investors should consult their prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital, member CIPF