With summer fast approaching, I thought it would be timely to recap the events that have roiled equity markets over the last six months.  As we approached the fall of 2018, we experienced a storm of concerns surrounding the looming threat of rising interest rates, slowing economic growth, and increasing trade With the U.S. and China protectionism.  This negative sentiment led to a sharp correction in equity markets through year-end.  As we entered the new year however, it appeared that many of these concerns were in the midst of being resolved, and we experienced a market rally that was just as emphatic as the preceding correction. 

Once this initial optimism had abated however, we began to hear renewed talk of tariffs and trade wars, with the most significant story being the apparent worsening conflict taking place between the U.S. and China.  While this conflict began with a more general focus on addressing the significant trade deficit between the U.S. and China, it is becoming increasingly evident that the U.S. has a specific interest in targeting China's high-tech capabilities as part of this ongoing dispute. 

In our recent article: Tools of the Trade War, RBC Global Asset Management's Chief Economist Eric Lascelles looks at the current state of this ongoing trade war, and how it could impact economic growth.  This is an issue that I believe will continue to evolve in the coming months and is something that I expect will be an ongoing cause of volatility in the equity markets.

As always, if you have any questions or concerns or would like to discuss any of these issues in more detail please don't hesitate to give me a call or send me an email.

Take Care

Mike