Current Market Review

The TSX Composite index is up only 0.7% year-to-date as of Aug 10, 2018, but the S&P500 is up 10.5% in Cdn dollars for the same period. The 10-yr government bond yields in Canada and the US are currently 2.3% and 2.6% respectively. Oil now sits at $68 a barrel (down from the previous blog but you wouldn’t know it at Montreal gas pumps!). 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 still remains in growth oriented areas like Information Technology, Consumer Discretionary, and Health Care. Trump’s increased tariffs on Turkey have roiled the global markets this week. But in the US, they have low corporate tax rates, near-record low interest rates, a strong U.S. dollar, record buy-backs, record sales and earnings and a near-record high stock market. So no worries? Growth stocks look good. Will it continue? We will see.

Market Trend

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Ultimate Funds

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