Feb. 2, 2018
Investment Outlook Q4 2017
- The Bank of Canada shifted to a more cautious policy stance following two interest rate increases in the third quarter.
- Equity markets continued their upward climb thanks to continued support from economic growth and accommodative financial conditions.
- Globally, yield curves have flattened substantially as central banks raised short-term interest rates while long-term rates remain low.
- Near-term, the risk of recession is quite low and therefore a significant market downturn does not look to be imminent.
- The recently-passed tax bill in the United States should also provide some near-term upside to the economy.
- Technological advancements in cryptocurrencies may ultimately reduce costs and improve security, however, we doubt that governments will allow other “currencies” to challenge their own.