NAFTA – Concerns surrounding NAFTA have been top of mind as a sixth round of negotiations wrapped up in late January. There is a real risk of a U.S. announcement to pull out from NAFTA. This may well be a negotiating tactic; however, the Canadian market would react negatively. Over the longer term, the markets will adjust to whatever new trade rules take the place of NAFTA. But until then, the uncertainty could impact various companies including Magna and Gildan.
Click here to read more: Cardinal Update – February 2018
MARKET OUTLOOK – The fourth quarter ended strongly with markets across the globe seeing sharp gains. What were already high valuations have stretched even further as economic data from across the globe has been excellent. Our view is that we are not yet at the peak of the bull market and 2018 should be another good year for equity markets. None of the traditional recession indicators are flashing red, or even yellow, and though stocks appear to be fully valued, they still look cheap relative to other asset classes like bonds, most areas of the real estate market, and especially bubbles like Bitcoin.
Click here to read more: Cardinal Quarterly – January 2018
YES, IT IS DIFFERENT THIS TIME – About two and half years ago, the NASDAQ index reclaimed the high mark it had set a decade and a half earlier when the dot-com bubble was at its most inflated. Rather than being met with hand wringing and apprehension, however, the re-crossing of this once frothy threshold generated little angst amongst the investing public and not even much fanfare from the ordinarily excitable financial press.
Click here to read more: DM-Monthly-Report-Jan-18
Too Far, Too Fast? – Stretched, overdone, long-in-the-tooth. Unprecedented. As gains pile up, such labels are being applied more frequently to stock markets and, with another strong year now in the books, they aren’t likely to be put away anytime soon. Of course, underlying these descriptions is a nagging fear that things are going too well, that today’s growth will eventually be reciprocated in tomorrow’s crash. With the long shadow of the financial crisis still cast across investor memories, bouts of trepidation are understandable.
Click here to read more: DM-Portfolio-Commentary-Q4-17