Not So “Happy” Start To The New Year; Despite A Lengthy List Of Challenges, Our Base Case Calls For Relatively Flat Markets In 2016 On A Price-Only Basis

Portfolio Advisory Group

January 12, 2016

The calendar may have changed but the challenges of 2015 have carried seamlessly into the new year, with 2016 off to one of its worst starts ever. Although sharp losses in the Chinese equity market may have been the trigger (see below), weakness in U.S. and Canadian equity markets reflect heightened anxiety about 2016 earnings growth, commodity prices, Federal Reserve’s interest rate trajectory, the pace of global growth, and geopolitical risks. The critical question on the minds of every investor is whether there is material further downside ahead.

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