Economic Upswing Remains Healthy; Stay Overweight Equities With Cyclical Bent

Here's What We're Thinking

September 20, 2017

Global markets continue to benefit from solid fundamentals, bolstering our bullish positioning strategy. The economic expansion is running near highs for this cycle with global GDP running at 3%+ aided by both solid consumer spending and a recovery in business investment outlays. The broadening out of economic momentum from the U.S. to other major economies including Canada, Europe and Asia has improved the resiliency of the global economic expansion, now in its ninth year.

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Potential Volatility Amid Political Uncertainty; Strong Earnings Support Overweight Equities

Here's What We're Thinking

August 22, 2017

Global markets have traded with a defensive tone over the past month as investors have been confronted by a series of geo-political headwinds triggering a wave of mild profit-taking in recent weeks. Events emanating out of Washington have dominated market sentiment thus far in August including intensifying tensions with North Korea, terrorist attacks in Europe as well as the White House’s response to the events in Charlottesville, Virginia. Amidst the reduced liquidity of late-August, we expect markets to remain hesitant as investors could look to lock in profits (oneyear total return in local currency terms: S&P500: +13.4%, S&P/TSX: +4.7%) ahead of September’s important event risk.

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