I saw a funny thing on the way to Thursday's market meltdown. Two little
pieces of data caught my eye.

First, our friends at CPMS put together a chart that shows how,
historically, flows into investment funds have been lowest just as the
equity market is beginning to rebound. Let's see if "sell low, buy high"
repeats itself.

Secondly, I recall musing as I wrote our Q2 commentary that Canada was one
of the few equity markets with positive returns thus far in 2008. In the
second quarter, the S&P TSX returned 8.4%, while the Shanghai SE Composite
was down 21.2%. The trade for several quarters had revolved around a growing
China needing energy and other natural resources, and Canada being a stable
source of supply of that energy. Something was not right: if stock markets
are forward looking, then maybe the S&P TSX was a bit rich. As at Nov 20,
The Shanghai Index is up almost 15 per cent in the month of November, while
Canada's equity index is down almost 20%. Let's see if we here in Canada
have overshot on the downside.

Eric Dzuba,
Associate Portfolio Manager