Global economy, NAFTA and financial markets

Despite some protectionism headwinds, the current cycle should extend another several quarters.

Rate normalization is well underway in North America whereas the ECB will end its quantitative easing program in 2018.

With central banks becoming less accommodating and trade tension risks, we expect more volatile stock markets this fall. Profit growth remains strong in the U.S. stock market. However, on a risk-return basis, we continue to favour Canadian and overseas markets. Much continues to be written about the NAFTA renegotiations. However, the strength of the Canadian economy encourages us to remain partially hedged on the CAD/USD.