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(August 7, 2007) Recent market volatility has been driven by irrational fears that problems in the U.S. mortgage market will spill over into the Canadian equity market, according to a report out of CIBC World Markets.

“Investors followed a circuitous route to link U.S. mortgages to Canadian equities over the past month,” says Avery Shenfeld, senior economist at CIBC World Markets. While there are very real problems south of the border, the connection to Canada is tenuous, he says. “Unfortunately, over the last month, investors have been throwing out babies with the U.S. mortgage bathwater.”

Outside of the U.S., economic growth remains fairly secure, and even the Canadian economy has picked up steam once again. Market strategists at CIBC World Markets remain optimistic about Canadian equities and recommend an overweight position in stocks.

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U.S. consumers cheer up

(August 7, 2007) Investors may be a little nervous after the past two weeks of market gyrations, but as recently as last month, U.S. consumers were starting to cheer up a little, according to the Conference Board.

The Consumer Confidence Index rose to 112.6 points (using 1985 as a 100-point benchmark), up from 105.3 in June.

“The rebound in consumer confidence has catapulted the index to its highest reading in nearly six years,” said Lynn Franco, director of the Conference Board Consumer Research Center. “An improvement in business conditions and the job market has lifted consumers’ spirits in July.”

Only 14.4% of survey respondents thought conditions were bad in July, compared to 28.1% who said they were good; 30.5% believed jobs were plentiful.

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VenGrowth closing Cash Management Fund

(August 7, 2007) The board of directors of VenGrowth Capital Partners has decided to cease distribution of the VenGrowth Cash Management Fund.

The fund will be wound down and terminated, and an amendment to its simplified prospectus dated January 18, 2007, will be filed.

(08/07/07)