Provisus Monthly Insight – March 2018
STOCK SECTORS AFTER RATE HIKES – Last year the Bank of Canada (BOC) implemented its first interest rate hike since 2010 and many investors reached for their crystal balls to try and forecast the future. While rising rates tend to signal stronger economic conditions and inflationary pressures, they can also have a meaningful impact on stock market sector returns. Changing the overnight interest rate, which is the cost that depository institutions pay to borrow money, is how the BOC attempts to control inflation. When the BOC increases the overnight rate, it does not directly affect the stock market but it does have a ripple effect that can rock the market. However some sectors benefit from interest rate hikes and others do not.
Click here to read more: Monthly Insight – March 2018 – Stock Sectors after Rate Hikes
Cardinal Update – February 2018
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
Cardinal Quarterly – January 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
DM Monthly Report – 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
