Increased Risk Appetite Warranted By Improved Conditions, But Valuation And Upcoming Hurdles Important To Watch

Portfolio Advisory Group

April 20, 2016

Stronger economic data from China, oil’s ability to sustain a US$40/bbl price tag, and dovish messaging from the Federal Reserve have contributed to increased risk appetite in capital markets. Equity markets, commodities, emerging market currencies, and high yield debt have all participated in a broad rally. Our preference for Canadian equities over U.S. continues to bear fruit as the S&P/TSX Composite Index (+6.6% YTD) remains the best performing G7 equity index on a local currency basis and even better on a Canadian dollar basis so far this year (S&P500: -5.8% YTD on CAD basis)…

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