Yellow Light, Green Light

KEY THEMES

Here are some themes we’ll be watching this quarter.

We believe:

• Canadian bond yields will likely trend higher, albeit at a slower pace, as year-over-year data remains healthy, but is working off a depressed base.
• In aggregate, US equity valuations remain elevated, boosted by key Information Technology stocks.
• Oil prices are likely to remain range-bound, as overseas production cuts are balanced against rising US output.
• Political uncertainty in the Euro area is now moderating with the end of elections in France and Germany and outcomes supported by investors.
• Higher corporate earnings will continue to push emerging markets higher.

FULL STORY