Shaky Ground: Global shocks rattle markets

The worst of the Great Recession is well behind us, but so far 2011 has seen global markets lurch from one crisis to another.

America appears content to inflate its way out of debt, which left unchecked could erode the savings of bondholders.

In Europe, the sovereign debt crisis of a handful of countries has been met with bailouts from Germany and the euro itself is now in question.

In North Africa and the Middle East, protests have toppled the governments of Tunisia and Egypt, Saudi tanks helped quash a revolt in Bahrain and Libya remains embroiled in a civil war.

And in Japan, a series of earthquakes have devastated infrastructure, leaving the country with rolling blackouts and spreading radiation leak from a damaged nuclear power plant.

But with every crisis, there comes opportunity. Armed with information, advisors can help insulate client portfolios from the worst effects of the various calamities.

Amid global turmoil, U.S. looks solid

By Steven Lamb – Global investing remains important for Canadians, despite the fact that the world is becoming increasingly unstable. With risks ranging from sovereign debt and political upheaval to natural and nuclear disasters, one of the smartest places to invest might be close at hand.

Canada surefooted in wobbly world

By Vikram Barhat – Having turned the corner in 2010, Canada’s economy continues to inspire a positive outlook despite some uncertainties, according to the latest Economic and Financial Outlook by Desjardins Economic Studies. The study, released this morning, said the outlook for Canada’s economy is overall optimistic. The main sources of this sanguinity are the S&P/TSX, which has outperformed the S&P 500, and the strong loonie that has steadfastly been holding above parity with the eagle.

Canada a standout in IMF outlook

By Canadian Press – The International Monetary Fund boosted its expectations for Canadian economic growth this year as it warned the world is facing new threats from surging oil prices, Mideast turmoil, higher inflation in China and Europe’s debt woes.

Analysts grapple with Japan, Mid-East

By Vikram Barhat – As the cascading effects of ongoing geopolitical strife in the Mid East and the two-pronged trail of destruction in Japan continue to unfurl, financial pundits scramble to gauge the extent of their impact on the global economy and Canada’s portion of woes.

Breakup or make up for the eurozone?

By Dean DiSpalatro – Will there be a tighter or looser monetary union in the eurozone in 10 years? What steps should be avoided in dealing with the eurozone debt crisis? These are some of the questions Jens Larson, RBC’s top economist in Europe, addressed at an Economic Club of Canada lunch in Toronto. Larson rules out the default option because it will cause heavy losses across the eurozone.

Global insurance industry feels Japan tremors

Japan exposure limited: Manulife

Global crises curb March fund returns

Japan’s crisis energizes commodity markets

Global economy to weather Japan woes: CIBC

Long-term benefits seen in Mid-East unrest

Smaller Asian markets come to the fore: Study