Montreal, Canada

As world markets enter the den of another sell-off since hitting a low more than 14 months ago, it’s time to start placing some bets against some sectors that might decline sharply this summer and fall.

Capacity has drowned some areas of the global economy heading into this summer, namely tied to the commodities cycle. These include renewable energy, oil stocks, shipping companies and the base metals.

Montreal, Canada

For the first time since early 2009 inter-bank lending rates are climbing among European banks as investors wager which institutions are safe and which are at risk of default. And three-month LIBOR or the London Inter-bank Offered Rate, is trading at 0.43% this morning – elevated compared to the 0%-0.25% Federal Funds rate, which it tracks. Less than a month ago, LIBOR traded at 0.30%.

Montreal, Canada

Buy when there's Blood in the Streets…

A recent study courtesy of Montreal-based Bank Credit Analyst (BCA) suggests that previous credit crises followed by International Monetary Fund (IMF) rescues have accorded investors big gains in local stock markets.

BCA examined several rescues in the 1990s with Mexico, Russia, South Korea and Indonesia as case studies. In all examples, stocks posted huge double-digit gains within 12-18 months of the IMF rescue packages.

Montreal, Canada

The International Monetary Fund (IMF) is likely to rain on the gold parade as it seeks to unload almost 200 tons of the metal to raise capital for this week's eurozone bailout. Investors should use the upcoming correction – which should be quite sharp but short-lived – as another opportunity to accumulate gold.

Montreal, Canada

Montreal, Canada

First it was Dubai, then Greece, and now it looks like Spain and Portugal are next on the firing line.

Imagine what happens to global capital markets if and when investors decide to dump Treasury bonds, driving interest rates through the roof and triggering the Mother of all sovereign debt crises?

Montreal, Canada

History shows that we've experienced only three major redemption cycles in U.S. stock mutual funds since 1983. And, if history is an accurate guide, then it seems pretty reasonable to suspect that stocks can rally much higher before hitting a peak in this cycle. That's because mutual fund investors haven't come to the party – at least not yet.

Montreal, Canada

The Americans, British and Swiss have done it. But the European Central Bank (ECB) refuses to launch a bond buying program.

Increasingly, it looks highly probable that as the EUR loses support and continues to fall sharply the ECB will have to instill a measure of confidence across the weakest eurozone bond markets. Greece needs a buyer of last resort – a big buyer. And only the ECB has the monetary muscle to make a difference and quickly.

Montreal, Canada

As the Obama administration faces enormous pressure to reverse its recent decision to boost Gulf of Mexico drilling, the United States should look to Canada to secure safely transportable and reliable oil. The disaster unfolding in the Gulf only solidifies Canada's place as a secure source of oil for the United States.