After the Inauguration
by Kevin Anseeuw on 01.23.2017
by Kevin Anseeuw on 01.23.2017
Last week was another stretch of decreased optimism in American equity markets with the S&P 500, DOW, and NASDAQ losing ground for the week. After two months of historic gains following the US elections, the wave appears to have crested, at least temporarily.
President Trump stated in his inaugural address, “we will build new roads and highways and bridges and airports and tunnels and railways all across our wonderful nation.” However, the promise of increased infrastructure spending and the associated jobs and economic growth has not been specifically articulated and markets are hovering in the US as investors await details.
In Canada, the TSX had another healthy week defying the growing concerns south of the border. Stephen Poloz, Governor of the Bank of Canada, held Canadian interest rates firm. He indicated that rate reductions could occur if Trump’s protectionist trade policies hurt our economy. Meanwhile, Janet Yellen, US Federal Reserve Chair, indicated that the Fed’s plans for gradual interest rate increases is still the plan of action for 2017 since consumer prices are increasing at a growing rate.
According to the Canadian Real Estate Association, Canadian home prices grew at 10.5% in 2016 with the average price just above $490,000. An article posted by CNN stated that Vancouver was the second most expensive housing market in the world (tied with Sydney, Australia and behind only Hong Kong, China).
Enjoy what could be the last of our unseasonably warm weather.
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