This is not to say that we can rule out yet higher valuations, but with no transformative technologies driving the economy, little expansion in capital investment, and ongoing retrenchment
in consumer balance sheets, I can't help but think that the «virtuous cycle» rhetoric of Ben Bernanke is an awfully thin gruel by comparison.
CB: With government and
consumer balance sheets being what they are, how do you see the Canadian and global economies performing over the near term as interest rates rise and government stimulus stops?
While valuations are stretched and investors must operate with a higher level of diligence in today's markets, I believe stabilization of the housing market supports the underlying health of the economy and
consumer balance sheets.