Quarterly Bulletin Q3 – 2017

Economies are doing very well, thank you. In spite of the expected impact from the hurricanes, the U.S. economy’s growth in the third quarter surprised most observers, reaching 3% according to the initial estimates of the U.S. Department of Commerce. Growth in the previous quarter stands at 3.1%. In Canada, even though we knew that the 3.7% and 4.5% growth achieved in the first two quarters of 2017 was unsustainable, the projected rate for the third quarter is still 2%. So the final figure for 2017 is expected to be approximately 3%. Annualized growth of the global economy now stands at around 3.7%, and the manufacturing indicators (global PMIs) are almost systematically reaching unprecedented highs.

Archives

2017

In the fourth quarter, the economic and political news was marked by a synchronized global economic upsurge, rapidly expanding corporate profits, the adoption of a sweeping tax reform bill in the U.S. and somewhat eased geopolitical tensions.

2016

A multitude of risk factors have unsettled the markets during the first six months of the year.

2015

Fortunately, the North American economy continues the expansionary momentum en-joyed over the last 5 years. Despite some ambiguous data, the improving economic conditions are palpable. We do not see any signs of a pending recession, therefore North American equity markets should do well. The risks perceived by investors are related primarily to three concerns.

2014

Q3 2014 allowed some financial terms, absent from our lexicon for several years to resurface. Indeed, despite globalization which has been accelerating for decades, many economists and investors are now once again arguing in favor of the “decoupling” of economies to the benefit of the US and UK and to the detriment of Europe and […]

2013

QE = RT « Quantitative Easing = Risk Taking ». This seems to have been the magic formula in 2013, a remarkable year for risk as- sets, most notably for equi- ties and corporate bonds.