July 23, 2018
Economic momentum slowed during the first half of 2018 and leading indicators point to further slowing in the second half of the year.
The Bank of Canada remained sidelined since its January interest rate hike although it strongly suggested that an early third quarter increase is likely.
Bilateral trade agreements are being negotiated —while the U.S. is shutting down its trade borders, China has been opening them with its Asia Pacific Trade Agreement.
Rising trade tariffs and protectionism will impact the global supply chain which now dominates international trade.
Continued economic and currency strength in the U.S. will lead to increased funding concerns for emerging economies.
The environment for financial assets is becoming more uncertain, a carefully selected portfolio of high quality stocks and bonds will provide the necessary ballast for the potentially more turbulent environment ahead.