Page 63 - Canadian Industry Online

CMEit is negative news tells me the stock markets values are very highly over- valued and have really little to do with earnings performance in the economy today.How does the volatility in the oil market play into this?We’ve seen inflation in the oil market. The price of oil today is gyrat- ing like wild, but when you really look behind the scenes it’s clear that the demand for oil hasn’t fundamentally changed.The Chinese economy is still growing and of course we are still pumping oil out, but it’s the expecta- tions that have changed and the ability of the price to gyrate that much purely based on speculation shows how dis- located the price of oil is from real fun- damentals in the market.The same could be said about currencies. The Canadian dollar may be performing weaker than the United States dollar, but there is nothing that has taken place, or can be projected that would justify a 25 per cent drop63