May’s CPI delivered a rare downside surprise that the Federal Reserve has been waiting for in Q4, as both headline and core measures came in lower than expected....

A Small Step Towards Easing, a Big Leap in G7 Central Bank Monetary Policy...

Since the last newsletter, we have seen a recovery in stocks, which are now holding near record highs in North America, while expectations of the Federal Reserve easing monetary policy are reducing and yields are trending higher....

In the month of April, inflation reports on both sides of the border showed a moderation from the increases in recent months....

As expected, the FOMC has kept the Fed Funds rate at a 23-year high for the sixth straight meeting and announced a slowdown in the pace of balance sheet runoff beginning in June....

The 2024 budget continues the trend of tax-and-spend policies with a major reform to capital gains taxes, spending programs on housing, health, infrastructure, Indigenous priorities, and defense, and no clear path to a balanced budget in sight....

A stubborn CPI report continues to erode rate cut expectations by the Fed for 2024 while the Bank of Canada holds rates steady for a sixth consecutive meeting while laying the groundwork for a rate cut in June or July....

There is growing divergences between the Canadian and US economies with the US economy being surprisingly resilient versus a struggling Canadian economy....

We are entering a period of globally synchronized Quantitative Easing as we expect global rate cuts in the coming months. As such, financial markets have continued their bull run, supported by stronger than anticipated Q4 earnings and the resumption...

2023 was a year defined by the markets climbing the wall of worry to recover from the 2022 drawdown....