The current market environment reminds me of one of my favourite Spaghetti Westerns, The Good, The Bad and The Ugly. A tale of a man with no name (also known as Joe or Blondie), Tuco, and Angel Eyes on a quest to find buried gold.
A lot of attention is being paid to very short-term treasury yields and their inversion to 10-year bond yields, and rightfully so. But is the very front of the yield curve impersonating “Chicken Little”?
Many different headlines grabbed our attention this week. From Canadian GDP and NAFTA negotiations, U.S. Purchasing Managers Index data, to the Italian Government announcing much higher than expected deficit spending all having an impact.
Surging market interest rates continued this week. Strong economic growth and rising core inflation are signs that central banks will keep hiking interest rates.
A lot of ‘same old / same old’ this week when it came to economic and political headlines, so we remain in this goldilocks frame of mind. That is a good thing, however we are also beginning to see signs that this might be about to change.
As we enter the dog days of summer, economic and market optimism remain healthy as companies begin to report continued growth.
As we close out a holiday shortened week, North American markets remain in a corrective state and will post their first negative quarterly return since mid-2015.
This week, we continue to see some stability within our markets, as they work through this corrective process. We also saw a plethora of economic data which gives me confidence in their future positive direction.
Happy New Year!!
As we embark on the new year, investors have reason for both optimism and caution. With the anticipation that 2018 could be a pivotal year for global equity markets, how we navigate both will be critical.
When I sat down to write my commentary this week, I thought back to a question I was recently asked, “is it important to you, how and what the companies you own do to make money”? This week’s commentary will, in broad terms, begin a conversation to help answer that question.
Last week I mentioned that world events could introduce what I called ‘Stroke of the Pen Risk’ to investors. Yesterday we saw an excellent example of that, in Norway’s announcement that their Sovereign Wealth Fund is proposing to sell their investments in fossil fuels.
Benson Private Wealth