Equity Markets

We can draw a parallel between our equity markets and the weather. This market is a like a warm and dry summer that doesn’t want to end. We can appreciate it but also must realize that winter will return at one point. Winter is volatility and stocks are still wearing their shorts. In calm fashion, all important equity markets for Canadian investors offered good quarterly returns to close out a profitable 2017. The most important themes are a return to a solid economic backdrop post energy crisis for Canadian equities, a corporate tax boost for US equities and improving economic strength for EAFE equities.

Equity Markets

In a repeat performance from last quarter, investors are accumulating nice gains from their equity investments without having to suffer much in volatility. Over the last few months, most of the morning meetings at Louisbourg have started with a statement suggesting that equity futures were slightly higher.

Equity Markets

Equities are progressing higher with below average volatility. This has been the case for some time despite President Trump’s inability to enact significant changes. It is also worth noting that this rather calm period is happening in conjunction with important central banks reducing stimulus for the first time in a very long time.

Equity Markets

This quarter was marked by the inauguration of President Trump and the political circus that followed, including new concepts such as “alternative facts”, the triggering of Article 50, which signals that Britain will officially leave the EU no later than April 2019, and continued concerns about pro-protectionist sentiment in Europe.