Stelmach confident Alberta will weather global market storm
Posted Aug 8, 2011 10:32 pm.
This article is more than 5 years old.
Premier Ed Stelmach says he’s certainly concerned about the markets and the situation south of the border, but Alberta will weather the storm.
During a stop in Lethbridge Monday, he says our province is an island onto itself.
“In terms of economic growth, continued job growth … you know especially younger people in other provinces are moving to Alberta and we have to be prepared,” says Stelmach.
He says we’ve been fortunate in the past to lean on the U.S. for trade, saying now it’s necessary we push forward with the private sector to access more markets around the world, particularly in Asia.
And, at least one economist is warning against everyone running for the exits at the same time.
Patricia Lovett-Reid with TD Waterhouse tells 660News, investors should step back from the sell button for the moment.
“Have a look at what you’re holding and if it’s good quality, you know we’ve been through events before — and we will be through them again — so it’s just going to take some time,” says Lovett-Reid.
She believes smart investors will hold on for the time being, pointing out that a well diversified portfolio will carry the day. But, she also understands the battered psyche of investors.
Even oil has plunged to its lowest level of the year, trading at around $81 a barrel.
Prices have fallen by roughly 20 per cent in just one week because of supply concerns in the U.S.
Delta One Capital’s Peter Linder says he’s surprised by the sudden drop.
Linder says, it’s clearly a hit for the oilpatch and Alberta’s economy in the short term, but believes prices could rebound to around $100 by the end of the year.
He adds some of the losses in the oilpatch are being offset by the lower Canadian dollar.
