Wall Street’s Record Rally Continues on Tax Reform Optimism; TSX Ends on a High Note
After a rocky first half, North American stocks ended the month of November on solid footing. On Wall Street, the Dow Jones Industrial Average closed above 24,000 for the first time in its history, as investors cheered the prospect of imminent tax reform. North of the border, Canadian stocks recovered thanks to a sharp rebound in energy stocks
Wall Street Notches Seventh Consecutive Monthly Gain as TSX Plays Catch Up
The global uptrend in equities continued last month, with Canadian stocks participating in the rally as upbeat earnings and a synchronized global recovery fueled investor optimism. For the first time this year, Canadian markets are getting a vote of confidence from investors thanks to prudent guidelines from federal and provincial governments to help stabilize the housing market.
Wall Street Sets New Highs as TSX Turns a Corner
The month of September was a surprisingly buoyant period for global equities. Underpinned by strong institutional demand, U.S. stocks rose to fresh records, with the Nasdaq Composite Index leading the way higher. In Canada, the TSX posted its biggest single-month gain in over a year as heavyweight financials rallied. Significant developments in monetary policy were also observed last month, with the Bank of Canada and Federal Reserve leading the global shift toward gradual tightening.
Canada’s Economy Shines Again as Equity Markets Overcome Volatility
For market participants, the month of August was no time to be idle. Record highs on Wall Street were followed by the biggest one-day fall in three months as geopolitical risks and concerns over President Trump’s agenda loomed large for investors. Back home, the Canadian economy emerged as the best-performing nation in the Group of Seven by posting yet another quarter of stellar growth.
July was a significant month for the global financial markets. Canada solidified its leadership pace on the recovery front, while Wall Street flexed its earning power. Politics and central bank decision-making have also factored into a season that has yet to deliver the so-called “summer doldrums.”
S&P 500 Shines in First Half Despite Political Drama; Canadian Stocks Fail to Advance
June was a volatile month for the global financial markets, as plunging oil prices and rotation on the sector front triggered heavy losses in the benchmark indexes. Despite slipping from their recent peaks, Wall Street capped off one of its best first-half performances since the global financial crisis. However, the same couldn’t be said for Canadian stocks, which failed to grow in the first six months of the year.
Wall Street Recovers from Politically-Charged Selloff; Canadian Economy Outshines Global Peers
Investors ran away from the G7’s fastest-growing economy last month, as geopolitical risks and an uncertain domestic outlook caused the Toronto Stock Exchange to underperform its global peers. Political scandal in the White House triggered a sharp rise in volatility, leading North American markets to their biggest one-day drop in at least eight months. Although Wall Street recovered, Canadian stocks didn’t fare nearly as well.
The purpose of this summary is to provide you with a brief overview of the markets globally as well as highlight activities within our portfolios during the first quarter of this year.
This summary will be broken down into three segments including a review of our investment process, an overview of the markets globally and our portfolios during 2016.