Penny Stock Detectives Special Report Reveals a Country Actually Considering Raising Interest Rates

In a recent Penny Stock Detectives article, editor Danny Esposito argues that as global economic growth around the world continues to contract, an investor would be hard-pressed to find a central bank that was actually contemplating raising interest.

New York, NY (prHWY.com) July 6, 2012 - In a recent Penny Stock Detectives article, editor Danny Esposito argues that as global economic growth around the world continues to contract, an investor would be hard-pressed to find a central bank that was actually contemplating raising interest rates. However, the editor's recent article reveals one country's central bank that is actually doing so, due to its economic strength that can be seen in its job numbers, real estate market, and currency.
According to Esposito, in the last six months, the Canadian economy has averaged an incredible 28,000 new jobs, blowing the Canadian central bank's expectation of 15,000-20,000 in new jobs for Canada.
"With strong jobs growth, Canadian consumer confidence continues to hold up well when compared to the rest of the world, as evidenced by relatively strong retail sales," observes Esposito.
Canada's real estate market has been relatively stable as well due to strong consumer confidence. This has kept inflation numbers in Canada a little high, which is why the central bank is actually considering raising interest rates. Of course, this strength supports the Canadian dollar, comments Esposito.
Since Canada's economy has outperformed other nations, it stands to reason that the Canadian dollar would have outperformed many other currencies as well, which it did, Esposito outlines. An investor who owns the Canadian dollar owns a currency that has not joined in the money-printing spree evident in other developed economies, which translates to lower debt-to-GDP levels. This increases the attractiveness of the Canadian dollar, he notes.
It is true that during the financial crisis and in the aftermath right up until the end of 2011, Asia was the only area of growth in the world. The region's demand for commodities helped support Canada and the Canadian dollar, while much of the rest of the world experienced a contraction in economic growth, believes Esposito.
Canada is home to some of the greatest concentration of natural resources in the world, which is why investment has been strong and why the owning the Canadian dollar means owning a country where some of the largest mining and agricultural commodity companies reside, notes Esposito.
"The great part is that many corporations in Canada--not only the mining and agricultural firms, but also the manufacturing and technology companies--have taken advantage of their strong corporate profits and strong Canadian dollar to become more productive," he says.
Esposito further reports that imports of machinery and technology internationally to Canada have been strong over the last few years, as corporations have invested in their businesses to become more competitive and productive when compared to their global peers. This is evidenced by the rising productivity numbers in Canada, which leads to greater corporate profits and a stronger Canadian dollar, in Esposito's opinion.
"The fundamental story behind the Canadian dollar is solid," concludes Esposito. "This is not just a great way for investors to diversify away from the U.S. dollar, but also an opportunity to own mining companies or other well-run and globally competitive corporations thanks to a responsible central bank."
To see the full article and to learn more about Penny Stock Detectives, visit www.pennystockdetectives.com.

The editors of Penny Stock Detectives believe low-priced stocks, when researched properly, present investors with great opportunities to accumulate wealth and to increase the value of their investment portfolios. You can learn more about Penny Stock Detectives at www.pennystockdetectives.com.


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Tag Words: precious metal, canadian dollar, penny stock detectives

Categories: Business

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