Good afternoon,

 

While I’m working on a lengthier piece, I thought I’d send out these two current missives from our Portfolio Management teams for today.

 

First, a primer on the US debt ceiling, the “Superbowl” of congressional arguments:

 

Hitting the ceiling hurts, even if nothing breaks

 

By RBC Wealth Management - Portfolio Advisory Group

While the Committee sees a U.S. default as exceedingly unlikely, the political brinkmanship will likely bring higher volatility to both equity and fixed income markets, and may eventually risk the dollar’s status as the world’s reserve currency. We provide our perspective on the standoff and implications for investors.

 

Special Report: Here

 

Next, our usual weekly head-office submission, chronicling the bumpy positive start to 2023.

 

Think smaller? The new year has seen U.S. equities start off on the right foot with small and midcaps leading the way. As we survey the equity environment, we see six characteristics that should continue to make small and midcaps more attractive than large caps.

 

Regional developments: Canadian CPI decelerates further in December; U.S. reaches statutory borrowing limit while potential downshift in rate hikes drives Treasury demand; UK sees mixed economic data; Global investors turning more optimistic on China market

 

See more here: Global Insight Weekly

 

 

Enjoy your weekend!

 

Mark