As you may know from the news, financial markets are under some stress at the present time, due in large part from a slowdown of the Chinese economy and their efforts to exercise greater control over their markets. This has turned into a technical correction on many global markets.
Rob believes that this is a normal part of the market’s cycles, and indeed, the selling pressure may be seen in future days as mostly a healthy adjustment to what have been very strong markets in the post-2009 recovery.
Rob agrees substantially with the attached article from Fidelity Investments. We do not believe that either the United States or Canada is in recession, nor that this is likely. In fact, the current equity markets are providing new buying opportunities, subject to the usual qualifications of clients’ personal objectives and risk tolerance.
We want to share this timely market information with you. We trust you will find it helpful.
August 25, 2015:
We are hoping that the attached articles, from our Portfolio Advisory Group, will also help to answer some questions regarding the recent market sell-off, prompted largely by events in China. Today (August 25) the People’s Bank of China reduced lending and deposit rates for the fifth time since November in an effort to maintain its economic growth at 7% or better per year.
We will continue to provide meaningful updates on the China situation as developments occur.