Good afternoon,
As we head into a new week, I wanted to share a few articles and a webcast that I thought you may find of interest.
Warm Regards,
Rhonda & Hymers Wealth Management Group
We're in the "correction" camp:
We make the case that the correction will give way to a renewed advance in share prices and offer some thoughts on how to prepare portfolios for the challenges likely to come with an aging, slowing economic expansion.
CLICK HERE to read January's Global Insight
Global Insight Weekly
Keep calm and (cautiously) carry on by Linda Cooper - London
CLICK HERE to read article
A new year, thank goodness - January 2019
Eric Lascelles, Chief Economist, RBC Global Asset Management, shares the latest views on the global economy and offer insight into today's economic issues. The webcast includes an audio and slide presentation. CLICK on the presentation to view
Key Highlights
- The stock market remains tumultuous, with stocks down sharply over the past year.
- For 2019, various headwinds to global growth remain including tighter financial conditions, less help from fiscal stimulus, political tensions between the United States and Russia/China and increased protectionism hindering global trade (the bite of tariffs has already started to appear in global trade data).
- Although global growth in 2019 will probably be slower than it has been over the past two years, it should still align with the five-year average.
- The risk of recession is rising, and the stock and bond markets are both reflecting this risk.
- On a positive note, stock valuations are now cheaper after recent market declines and worries over rising interest rates have subsided as central bank expectations have been scaled back.
- Acknowledging that its growth is slowing, China appears ready to roll out more stimulus (most likely in the form of more tax cuts, interest rate cuts, and local infrastructure projects funded by bonds).
- Italy passed a revised budget with a smaller deficit, suggesting that the country’s debt situation is not as bad as some people feared.
- The U.S. Federal Reserve Board hiked interest rates in December, as expected, and the European Central Bank (ECB) has ended its bond buying.
- While democrats took over the U.S. House of Representatives on Jan 3, 2019, damage from additional paralysis in the U.S. government should.