Oct. 25, 2019
Investment Outlook Q3 2019
- Despite the U.S. Federal Reserve reducing short-term interest rates twice, the yield curve has continued on its inversion path.
- The Canadian economy does not yet seem to be displaying as much sensitivity to slowing global growth.
- Absent an all-out trade war, we believe that an economy-wide recession for the U.S. and Canada is unlikely in the next year.
- The long-term outlook is still weighed down by sluggish trend economic growth and somewhat rich valuations.
- Despite the geopolitical noise and longevity of the current business cycle, we still see better value in select equities over fixed income.