Oct. 25, 2017
The Bank of Canada raised the overnight interest rate twice to 1.0% during the quarter.
Economic growth continues to support financial markets with the synchronized global expansion still intact.
The improved pace of growth helped corporate bonds outperform government counterparts. Equity markets continued to move upward with support from earnings growth.
We anticipate the Bank of Canada will be very cautious in raising interest rates as it is cognizant of the risk that record high household debt levels pose on consumer spending.
Proposed tax reform in the U.S. would dramatically narrow the current tax advantage of Canadian corporations increasing
Economic momentum is still positive which should lead to further gains in stocks.