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News & Updates

For this post, I'd like to share some invaluable insights into events that impacted financial markets in 2018 and how things are looking for the year ahead.

 

This commentary comes from IA Financial Group's Senior Vice President and Chief Economist, Clement Gignac:

 

Special edition:

 

After the worst performance in 10 years, the stock market should perform well in 2019

 

Economically speaking, 2018 was marked by continued economic expansion south of the border for a ninth consecutive year. GDP growth was nearly 3% and the unemployment rate is at its lowest in almost 50 years.  

However, the year was markedly less favourable for financial markets. Despite an exceptional rise in U.S.

business profits, the Fed’s decision to continue normalizing its monetary policy and the escalation in U.S.‐China trade tensions have created a highly volatile environment on Wall Street. In fact, there were more than 80 sessions showing daily fluctuations exceeding 1% compared to barely eight in 2017. The risk premium on corporate bonds also increased substantially last quarter from an unusually low level.

 

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2018 Review

Investors are having a hard time adjusting to central bank tightening, trade war rhetoric, and a global growth slowdown. This has led to sharp valuation compression. Almost 90% of all global asset classes have generated negative returns, the highest proportion recorded in over a century. Meanwhile, cash is outperforming global equities and bonds for the first time since 1994. So, it seems fair to say that 2018 has been a tough year.

 

2019 Outlook

 

If excessive monetary tightening, escalating trade wars and a growth slump form the basis for worry, then the investment outlook for 2019 is beginning to brighten:

§ U.S. monetary authorities have signaled that they will slow their pace of tightening, while other major central banks push out the date for when they might start their respective tightening cycles;

§ The Sino-U.S. trade war appears to be de-escalating, the USMCA has been signed and the largest bilateral trade deal in history, between the EU and Japan, goes into effect March 2019;

§ A global recession seems unlikely over the next year. Ongoing growth will be aided, in large part, by the world’s two largest economies - U.S. and China.

 

The Big Picture

A look back at 2018 and outlook for 2019

 

Clement Gignac, Senior VP, Chief Economist

iA Financial Group

 

According to Deutsche Bank, close to 90% of combined bonds, equities and commodities indices are posting a negative YTD return. A first since 1901...

 

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2018 has been a year of growth and change at Frost Wealth Management.

We are so excited about how far we have come-- and even more excited about what's still to come. 

With HollisWealth joining the Industrial Alliance Securities Inc. family came many changes-- many of them behind-the-scenes. Now that we have all the building blocks in place, we are looking forward to delivering exceptional service and improving the client experience.

We value your input and welcome your suggestions to help us achieve of goal of best-in class. Let us know how we can make your interaction with reports, technology or staff better and we will strive to improve.

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