JFL

July 23, 2018

Investment Outlook Q2 2018

Economic Review

  • 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.

Investment Outlook

  • 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.

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