Current Market Review

The TSX Composite index is up 2.2% year-to-date as of July 13, 2018, and the S&P500 is up 9.7% in Cdn dollars for the same period. The 10-yr government bond yields in Canada and the US are currently 2.1% and 2.8% respectively. Oil now sits at $71 a barrel (no change from the previous blog). Our TSX and S&P arrows are up. Our third arrow based on seasonality could have turned down Apr 20 but remains up!

Looking at the US market, sector leadership remains in growth oriented areas like Information Technology, Consumer Discretionary, and Health Care. Many of the leaders in these sectors are smaller companies that rely mostly on US domestic revenue. ie with Trump’s trade war antics, global markets are not performing well given the uncertainty. And with his huge corporate tax reduction US small caps that don’t sell as much internationally are benefiting big time from the tax reduction. So small / mid cap US funds are looking good right now.

Market Trend

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Ultimate Funds

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