Castanet.net - Rallies & Reversals

Materials: driving the TSX
The materials sector closed at 380.37 on Friday April 11, 2008. The high over the last year was 399.65 on March 14, 2008 and the low was 262.49 on August 16, 2007. The materials sector has outperformed the TSX by over 40% and the S&P 500 by over 50% in the last year. The materials sector is exhibiting a classic upward channel with the current price above the 50-day and 200-day moving averages more often than not. Both the 50-day and 200-day moving averages are trending up suggesting a continuing bullish outlook. Given that the materials index is made up of companies such as Barrick Gold, Agrium, Agnico-Eagle Mines and Fording Canadian Coal (which are primarily agriculture, metals and mining resources), we expect this trend to continue. Worldwide demand should remain strong given the emergence of a growing class of wealth and infrastructure development in countries like China and India. This article is for information purposes only. It is recommended that individuals consult with a financial advisor before acting on any information contained in this article. The opinions stated are not necessarily those of Scotia Capital Inc. or The Bank of Nova Scotia. ScotiaMcLeod is a division of Scotia Capital Inc., Member CIPF.

The materials sector closed at 380.37 on Friday April 11, 2008.



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Posted: Apr 15, 2008 / 4:30 am Story# 38673 / Contributed

About the Authors

David Allard has 16 years experience in the financial services industry. He specializes in creating and managing integrated and comprehensive wealth management solutions for affluent clients. Most recently David was a Portfolio Manager for a leading Canadian investment management and private banking firm. He graduated from the University of Manitoba with a degree in Economics. He also completed an MBA degree. David is a member of the Chartered Financial Analyst (CFA) Institute and a founding member and past president of the Okanagan CFA Society. David resides in the Okanagan with his family. His interests include golf, tennis, mountain biking, skiing and triathlons. Over the years, David has volunteered with the Canadian Cancer Society, United Way and Big Brothers.

Email: david_allard@scotiamcleod.com

Website: http://www.yourlifeyourplan.ca

The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet presents its columns "as is" and does not warrant the contents.

These articles are for information purposes only. It is recommended that individuals consult with a financial advisor before acting on any information contained in this article. The opinions stated are not necessarily those of Scotia Capital Inc. or The Bank of Nova Scotia. ScotiaMcLeod is a division of Scotia Capital Inc., Member CIPF.

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