What does the collapse of shipping for a company in Newfoundland have to with the rest of Canada? Perhaps Toronto is in a bubble, but Canada appears to be on the brink of a recession. Unfortunately most investors time the market based on what the mainstream media reports and they will be the last to inform the public. Tom Bradley writing for the Financial Post penned a great piece on how most mainstream analysis falls into the trap that many investment professionals do. Mainly that they base future outlooks based on the premise that today’s data will not change. For example, “The employment outlook is excellent (future) because the economy is growing (present)”. These are comforting data points so long as nothing changes in the future. The bottom line be careful when the present – without context – is being used to predict the future.
Ore reserves at the Argyle mine in Western Australia have slowed to a trickle and with it the last of the vary rare supply of natural pink color diamonds. Find out what affect this mine’s closure could have on the pricing for pink diamonds.