Despite a strong start in January, global stock markets became unnerved in the latter part of the first quarter of 2018. Rising trade tensions contributed to the unease investors exhibited as the U.S. took a stronger stance on bilateral trade negotiations through the enactment of targeted tariffs. In addition, inflation and rising interest rates caused concern amongst investors. [+] Read More
In the last month, we have witnessed the return of some volatility in the global stock markets. While valuations have corrcted somewhat, They are still above their longer term norms. To date, there have not been any notable downward revisions in global economic growth over 2018. However, ten years is an exceedingly long time for an economic expansion to continue without a slowdown or recession. During any expansion, there are always elements in the economy that accumulate until things come to a breaking point.
All of the same geopolitical concerns stemming from Washington, North Korea, the Middle East and elsewhere remain. NAFTA negotiations drag forward with little progress in eveidence.
All of these factors lead us to continue exercising caution and prudence in the current environment.
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As 2017 comes to a close global stock markets have continued their ascent throughout the fourth quarter of 2017. Many economists pontificate on the synchronized global recovery underway, evident from improving employment levels and some muted signals of inflationary growth. Commodities have been on a roller coaster as perceived demand has spiked up and retreated over the course of the quarter. [+] Read More
Global stock markets generally continued their upward bias in the third quarter of 2017. This bias was supported by strengthening economic growth in both the developed and emerging economies although at subpar levels compared with traditional recoveries. [+] Read More
It has been ten years since the great financial crisis. In the US, the S&P 500 peaked on October 9, 2007. The Canadian market continued its upward trajectory into the following year peaking in June as energy stocks were buoyed by high oil prices. While the bull market leading up to 2008 had duration of about five years, the current bull market has gone on for ten years without any significant setback. [+] Read More
Global markets were mixed in the second quarter of 2017. The US market recorded another positive quarter, albeit half as robust as the prior quarter. European markets managed to eke out a modestly positive quarter in spite of a large decline in June following the inconclusive UK election. Asian markets were very strong due to trade in information technology and a positive election result in South Korea. Resource heavy markets such as those of Latin America, Australia and Canada were not as fortunate and generally posted negative returns in the quarter. [+] Read More
The victory of Emmanuel Macron in the French presidential election, followed by a decisive victory of his party in the legislative round, gave him control of the National Assembly, thereby reducing any near term concerns regarding the stability of the European Union (EU). [+] Read More
The media and President Trump continue their war of words on fake news and counter accusations of bias and polarized opinion. While Mr. Trump’s base support remains firm despite the deluge of negative press, investors are focussing more on economic fundamentals. [+] Read More