Falling Oil and Gold Prices

Falling oil and gold prices (and grains and other commodities too) indicate that investors think recent high inflation numbers will subside. And falling inflation is good for interest rates. This is already starting to show up in the US long treasury yields which fallen for several days now. Falling US yields in turn usually spill over into Canada so perhaps we can look forward to another round of rate reductions this fall. Perhaps. They say the main function of economic forecasters is to make weather forecasters look good by comparison so no one wants to go out on a limb and promise lower mortgage rates just yet.

I was sitting in a coffee shop with my wife the other day when I remarked "Look at that older couple at the end of the counter. That's probably how you and I will look in ten years." And my wife said "You do realize that there's a mirror at the end of the counter don't you?" How embarrassing. Those darn reading glasses let me down again.