“It was like someone turned on the lights at the high school dance. Not only did people begin to realize that the party was over, they also realized that they didn't really know who they had been dancing with.”
“[But because the bond market -- particularly the U.S. bond market -- was in a state of euphoria before last, fall with yields near record lows,] no one really realized that that was the case, ... People were looking for anything with a return of more than 5 or 6 percent.”
“It's a bit like closing your eyes and holding your breath waiting for a giant wave to crash down -- only to find that the wave has disappeared. There's a very similar correlation between what's going on now and what happened during the industrial revolution.”
“Monetary policy aimed at either fending off a low-probability occurrence of high core inflation or at curing a debt binge [in Canada] will run a greater risk of choking off consumption growth than in the U.S..”
“I think the biggest risk to Canadian equities (in 2006) is that we see a more aggressive spike higher in the Canadian dollar, which does put pressure on earnings and obviously competitiveness.”
