Reply #6: More choppiness expected on markets as rising interest rates quash enthusi [View All]

More choppiness expected on markets as rising interest rates quash enthusiasm

TORONTO (CP) - Investors should brace themselves for a choppy summer of trading and get used to the end of the days of cheap money.

"My suspicion is we have a ways to go," said John Johnston, chief strategist at The Harbour Group at RBC Dominion Securities. "And we're going to see some softness through the summer." Global stock markets were sent reeling last week after U.S.
Federal Reserve chairman Ben Bernanke stunned investors in saying the central bank would remain vigilant on inflation.

That came as a shock to many who were expecting the central bank to take a pause in raising interest rates after two years of steady quarter point hikes.

But it's not just the rising rate environment in the U.S. that has investors worried - it's the trend to higher rates around the world.

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