Economy and financial markets: A justified or risky optimism?

The global economy is showing signs of synchronized slowdown as trade tensions between the U.S. and China remain the main risk to the business cycle. The synchronized easing of monetary policies by central banks provides an important support for the continuation of the cycle. The resilience of the Canadian economy should allow the Bank of Canada to diverge from the Federal Reserve’s monetary policy in the coming year. The bond market is sending signals of recession while stock markets remain resilient for now. In this type ofsuch an environment, active management becomes very important.