JFL

Oct. 25, 2019

Investment Outlook Q3 2019

Economic Review

  • Despite the U.S. Federal Reserve reducing short-term interest rates twice, the yield curve has continued on its inversion path.
  • The Canadian economy does not yet seem to be displaying as much sensitivity to slowing global growth.

Investment Outlook

  • Absent an all-out trade war, we believe that an economy-wide recession for the U.S. and Canada is unlikely in the next year.
  • The long-term outlook is still weighed down by sluggish trend economic growth and somewhat rich valuations.
  • Despite the geopolitical noise and longevity of the current business cycle, we still see better value in select equities over fixed income.

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