Posted: Thursday, February 21, 2019 - 10:01 EST
- Geopolitical issues are increasingly dominating markets. This is exacerbated by the rise of algorithmic trading.
- Political issues, such as the rise of populism and de-globalization, are dampening economic growth.
- The global economy has slowed. North America is still reasonably strong, but Europe, China and Japan are all weak.
- Canadian crude oil prices have recovered, but the associated equities have not, due to investor aversion to the country’s energy sector.
- Market valuations for the U.S. and Canada are attractive, assuming corporate earnings growth remains strong.
- We seem to be back to an environment of slow growth and low rates. This is positive for equities, but we see heightened tail risks and are adjusting our portfolios accordingly.
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