Fear Turns to Greed

Good day,

On June 24^th, the day after the Brexit outcome, we stated that the market selloff would be short-lived as investors would likely shrug off the news as soon as the media began to focus on other stories. The knee jerk reaction affected markets for a couple of days, but fear was shortly replaced by greed based on positive job data out of the US and hints of economic stimulus from the EU and Japan. Another major contributor to global markets rising was the easing political uncertainty in Europe regarding Brexit as the UK appointed a new prime minister.

Last week was fantastic across North America and Europe. Based on strengthening US economic data, major markets moved higher, the TSX, S&P 500 and NASDAQ each gained 1.5% and are closing in on 52 week highs. The DOW gained just over 2% last week and is in positive territory from one year ago.

This week the Consumer Price Index will be released in Canada, and Cleveland will host the Republican National Convention where Donald Trump will accept the nomination for president in this autumn’s election.  How Canada will be affected is uncertain at this point.

It feels like summer is finally here.  Enjoy the heat.

Kevin

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