|Year to Date|
* 5% T Bills, 35% Canadian Bond Composite, 20% TSX Composite TRI, 20% S&P 500 C$ TRI, 20% MSCI EAFE (Net) C$ TRI
The new year brought new confidence to global investors that a more benign US Federal Reserve would not continue on a tighter monetary policy path. As a result, fears of a recession appear to have been assuaged for the near-term. This new-found confidence combined with the absence of the tax loss selling witnessed in December and greater liquidity experienced seasonally in January gave global equity markets a significant boost.
All eyes remain focused on China/US trade talks to justify further meaningful increases in equity values. At the same time, central bank policies (ECB, BOJ, BOC & Fed) appear to be quite dovish. We expect some stability in the fixed income and foreign exchange markets as a result.