JFL

Feb. 2, 2018

Investment Outlook Q4 2017

Economic Review

  • The Bank of Canada shifted to a more cautious policy stance following two interest rate increases in the third quarter.
  • Equity markets continued their upward climb thanks to continued support from economic growth and accommodative financial conditions.
  • Globally, yield curves have flattened substantially as central banks raised short-term interest rates while long-term rates remain low.

Investment Outlook

  • Near-term, the risk of recession is quite low and therefore a significant market downturn does not look to be imminent.
  • The recently-passed tax bill in the United States should also provide some near-term upside to the economy.
  • Technological advancements in cryptocurrencies may ultimately reduce costs and improve security, however, we doubt that governments will allow other “currencies” to challenge their own.

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