Trump or Treat

November 7, 2016

Fall is upon us, trees are shedding their green vibrant leaves and preparing for a cold winter. The market has taken a similar approach with a charismatic Barak Obama stepping out of the oval office as investors prepare for a change in leadership. While it does feel as if the world is being put on hold, there actually are things going on around the globe. The United States put on a scary Halloween mask (Donald Trump’s face), but under the costume, it continues to add jobs and push wage growth. This is leading to an increase in home sales and inflation. The market has not reacted favourably as investors continue to get defensive regarding a possible Trump win. After oil was the largest driver last month, it has cooled off quite a bit as production continues to grow. This is expected to be addressed as OPEC is looking to put in a production cap at the end of November. But until something gets implemented it will continue to take its toll on Canada’s economy as it is also not seeing any job growth and its GDP has slowed as a result. The numbers coming from the US continue to be strong, governments continue to create favourable investment environments and there is room for economic expansion. Hopefully, after the US election, the fear in the market will be reduced and the market can move upwards along with the US economy.

Read more