The Trump Effect

The Trump effect is still driving the American and Canadian stock markets upward. The back-tracking on several of his stated policies prior to the election has given rise to the belief that his campaign promises and his actions may differ. Trump campaigned on a restrictive platform for immigration and trade that would cause an economic downturn, but he is now hedging. Additionally, the combination of a Republican President, Republican-controlled Senate and Republication-controlled House is a potent combination for the U.S. stock markets which returned 13% per year when that has occurred previously.

Canada’s TSX followed along, buoyed by the good news from the south, and a rise in oil prices as OPEC’s agreement to cut production is coming closer to implementation. Inflation in Canada is below the Bank of Canada target of 2% per year, coming in at 1.5% in October, up from 1.3% in September.

It should be relatively quiet in the U.S. this week with Thanksgiving Day on Thursday and many Americans also taking Friday as a day-off.

Expect to see some exciting footage of shoppers in the U.S. on Black Friday as the holiday shopping season begins and watch for comparisons to previous years’ spending for clues on consumer confidence and the perceived health of the economy.

Have a great week.

Kevin

 

 

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