Sunday, January 18, 2009

Stocks could be in for more selling pressure on earnings, financial uncertainty

TORONTO - North American stock markets are poised for another volatile week with the combination of low expectations for fourth-quarter earnings and a possible Obama-rally as the new president of the United States takes office.

Canadian investors will also be looking for further interest rate relief from the Bank of Canada on Tuesday, the same day president-elect Barrack Obama officially takes office.

"I think the Obama rally is probably going to happen," said Adrian Mastracci, portfolio manager at KCM Wealth Management in Vancouver.

"There's the party atmosphere, the excitement, the new guy saying the right things, putting the team in place - I can see people saying this is going to be different."

The hope is that a massive new round of government stimulus will spark the start of a recovery later in the year.

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