From Gloom to Bliss and How it Happened

January 4, 2017

It was an eventful 2016 with many investors worrying about the state of the market in January and then absolute bliss post-Trump election. We will review this year’s top stories and what impact it had and could have in the future.

Some memorable events in 2016 were…

  • China’s manufacturing triggering a mass worldwide sell-off in early 2016.
  • The infamous BREXIT where the majority of the United Kingdom decided to leave the European Union.
  • An underdog celebrity candidate became the next elected U.S. President and which promises vows to keep.
  • Oil’s recovery and OPEC providing a glimmer of hope to capping production after a disastrous 2015. Lastly, the vote of confidence from the Federal Reserve in the way of raising rates by 0.25% round-up our major headlines.

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US Elections – Reality TV’s Finest Moment

December 5, 2016

Is there any more that I need to say besides that Donald Trump was elected President of the United States of America? Probably not, as it is old news by now. However, as expected we saw a bit of panic and then the markets resumed their upward trend. The only surprise was that the panic was very short lived as the stock market opened higher the very next day despite the pre-market futures being down as much as 4% overnight. The Mexican Peso was the biggest loser as a result of Trump’s election as it fell by as much as 13% the very next day.

We had an excellent guest speaker event last week with Anthony Scaramucci, a member of the US National Financial Advisory Committee and a key participant on the President-Elect’s transition team. He provided us and our guests with more detailed insight on how Mr. Trump is planning on accelerating US growth. The event was a success with tasty refreshments and a wide array of new and old luxurious exotic cars to experience.    

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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.

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Market Review for September 2016

October 4, 2016

Market Review for September 2016

Oil Increase Trump’s the Market 

This month felt like I went to a water park, but instead of excitement, the only thing that was open was a lazy river as not much happened in the way of volatility in the global markets this month, in a traditionally underperforming September. Canada’s economy rebounded recently as exporters saw improving sales and our trade deficit decreased again for the 2nd consecutive month. But to highlight, Canada is still suffering from a poor economy for most of the year as employment has been the decline. The biggest news has to be OPEC’s decision to finally step in and cut production. We won’t know this for sure until November 30th when OPEC reconvenes and discusses all the details. Lastly, the Presidential debates occurred with the majority of critics stating that Hillary won the first debate with ease, often staying in line with her prepared message and just letting Trump derail himself. The memorable line had to be from Hillary, when she criticized Trumps economic plan by calling it “Trumped-Up Trickle Down Economics” in which she stated would only help the rich. Saturday Night Live had a great skit of this debate and we highly recommend that you watch it as Alec Baldwin’s performance as Trump is spot on. At the time of writing this, it can be found here:  https://www.youtube.com/watch?v=Ukt2j4p_tv4. Looking forward, let’s hope the markets go upward smoothly and does not have Donald’s temperament which he call his “his strongest asset”.

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Market Review for August 2016

September 5, 2016

Market Review for August 2016

The Markets Mimic The Olympics Minus The “Bolt”!

The Olympics came to an end this month and it had some similarities with the market. Records were being broken and new highs in the US were being achieved despite relatively light volume and empty seats at some Olympic events. Despite the lack of any economic drama, it was nice to have a boring month opposed to the volatility we have had over the past year. The economic numbers in August were generally good. Even when weaker numbers were reported (retail numbers) the market continued to view it as, “it’s not great, but it’s not bad”, which did not derail the continued upward trend. The combination of slow but steady growth, low interest rates, central bank policies, recovering energy prices and strong US dollar have been the magic recipe for the markets this year.

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