Good morning,

Please find attached an update on the recent market volatility. Last week witnessed several intraday market moves of over 2% higher and lower which we have not seen for several years. This overshadowed some great quarterly reports and several dividend increases from names like Suncor (increased 12%), Brookfield Renewable Power (increased 5%), Brookfield Property Partners (increased 7%), Brookfield Infrastructure (increased 8%) and CP Rail (increased 10%).

 

Global Insight Weekly

Now that the U.S. equity market’s “abnormal” calm has been shattered, can the U.S. economy remain calm and carry on? We see that there’s usually a detachment between pullbacks and economic trends, and with consumer trends likely to remain healthy, the economy should as well.

Global Insight Monthly – February 2018

RBC’s views on asset classes, commodities, currencies, and the economy.

Global Insight – Complete PDF report; includes the Focus Articles below

Highlights include …

• Hitting their stride: The case for European equities – It all looks very different in Europe and investors can focus with more confidence on the attractive investment outlook.
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• Emotional investing: Getting past our biases – Investors should avoid the pitfalls of getting swept up with the herd in the “next big thing” or compartmentalizing assets into distinct mental pools.
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• Global equities: The beat goes on – The U.S. economy and profits were beating growth expectations long before the tax cuts became a reality. With recession risks low, equities should keep reflecting the growth in earnings and dividends.
• Global fixed income: Mr. Powell, meet your neighbors – Fed policy under Jerome Powell should look a lot like what we’ve been accustomed to. And with other major central banks looking to just peel away emergency support—not tighten outright—markets may need to recalibrate expectations.

Month in Review

Produced by RBC Global Asset Management's Chief Economist Eric Lascelles

February 12-16, 2018

This week’s #MacroMemo brings you another market update, the effects of unwinding quantitative easing, and an overview of Canada’s shocking job report.

If you have any questions, please feel free to contact our team at any time.

Warm regards,
Rhonda Hymers, CIWM, CIM, FCSI, FEA
Director, Vice President, Portfolio Manager & Wealth Advisor