We are pleased to share RBC Wealth Management's latest investment newsletter.

 

BoC-Fed divergence: In it for the long haul?

The BoC lowered its policy rate, and we think it will continue to cut rates sooner and faster than the Fed. This may not be a passing fad given Canada’s relatively high debt load and weaker productivity. Divergence between the Fed and other central banks should be less acute, but fixed income investors outside the U.S. should consider U.S. exposure where rates will likely be higher for longer.

 

Regional developments: Canada’s economic growth slowed in Q1 amid tighter financial conditions; U.S. bonds rally as economic data slows, commodities fall; European Central Bank delivers the first interest rate cut, but with a hawkish bias; Indian equities fluctuate on general election results.

 

Please take some time to review the Global Insight Weekly.

 

Feel free to contact our team with any questions and/or to discuss investment ideas.

We appreciate the opportunity to serve you and look forward to continuing to help you accomplish your long-term financial goals.

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