Our biggest positive for 2006 is that inflation remains contained and that valuations for the first time in several years could really go higher. That could be more of the driver for the market in 2006.

The outlook for inflation seems very positive to me for some time to come, and therefore, I doubt that there will be a need to fight inflation for quite a while, ... Indeed, I believe that further disinflation is more likely over the next year or so than a resurgence of inflation.

I don't think there's an inflation problem out there. We're very positive on equities.

You have to be positive on 10-year bonds when you expect lower inflation. I don't expect the Bank of Canada to raise rates at its next meeting because inflation is low and going lower.

A low inflation number is positive for bonds. It is possible that most of the tightening could be done.

House price inflation has picked up in recent months; if this continues it has positive implications for consumer spending via the wealth effect it provides to homeowners.