It was another positive month for your investment portfolio. The stable and positive behaviour of investment markets continued through July.
This activity mirrors the economic trends and data we have been highlighting for much of 2023.
Various measures of inflation in North America are moderating and overall trending lower.
In the United States (U.S.), the pace of second quarter gross domestic product (G.D.P.) expansion accelerated. At nearly two and a half percent this was ahead of expectations. In turn, economists continue to revise lower their probability of a recession for the U.S. in 2024.
Activity in the U.S. housing sector is displaying a similarly positive trend while rents (a component of inflation) in the U.S. are moving lower (greater supply and competition).
Deflationary prices in China remain an emerging trend. This would continue to moderate prices on many goods in the U.S. and Canada in the months ahead.
Quarterly earnings have been ahead of expectations. There has been a significant decline in reference to "recession" by business leaders during their earnings announcements. Their outlook for the future is getting better, not worse.
Our investments are composed of a diverse selection of leading businesses focused on the domestic U.S. economy and North America.
The path ahead is never linear day to day. We remain realistic yet more and more constructive on the longevity of this cycle of growth for investment markets in North America.
The view from Brian Belski, BMO's Chief Investment Strategist:
Stocks in your portfolio that made a new 52 week high this past month:
Mastercard*, Microsoft*, S&P 500 Index
Stocks in your portfolio that made a new 52 week low this past month:
The Loonie gained half a cent versus the U.S. dollar to: