Ron Hanson, Chief Investment Officer
As we move towards the second half of the year, we find capital markets to be on edge.
Investors are fixated on when the U.S. Federal Reserve (Fed) will finally increase interest rates.
As expected, the 50% drop in oil prices has weighed on Canada’s economic growth in the first quarter. Canadian equities have been in a trading range since highs reached last September, managing to stay in positive territory so far this year.
US equities, for the most part, have traded sideways and are up marginally for the year.
Notwithstanding the ongoing Greek saga, aggressive policy action by the European Central Bank (ECB) has helped push equities in the region higher.
Despite slowing economic growth, Chinese equities have gained 29.6% so far this year as retail investor activity increases on the back of promises of more stimulus.
Bond markets have experienced increased volatility. With deflation fears abating and global growth expectations improving, investors have been abandoning the ‘safety play’ of government bonds. Yields have been on the move in 2015.
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