“It’s the economy, stupid”

“It’s the economy, stupid” – Bill Clinton’s 1992 presidential campaign slogan

Here is a sample of what I read every day in the pre-market opening commentary on Bay Street.

June 5, 2019 “Futures are pointing to a higher open after the Fed is hinting at a looser monetary policy caused US stock markets to deliver its second best trading day of the year yesterday. Powell did, however, note that the central bank could not determine when or how global trade issues would be settled. The estimate of real GDP growth was revised slightly lower, to a 3.1% annual rate (vs. 3.2%). The headline figure was boosted by faster inventory growth and a narrower trade deficit, while consumer spending and business fixed investment slowed.

The International Monetary Fund (IMF) lowered its 2019 growth forecast for China’s economy to 6.2% from 6.3%, after the conclusion of the organization’s visit to China over roughly the last two weeks. The IMF also expects China’s growth to slow to 6% next year, and to 5.5% by 2024.

The Mexican Foreign Minister Marcelo Ebrard will be meeting with White House officials today to discuss the latest round of tariff threats from President Trump. The US is set to impost 5% tariffs on all imports from Mexico starting June 10.”

This morning commentary is important because rather than focusing on specific stocks or market sectors, it provides a valuable insight on what is driving the markets instead. Our eyes are focused on the big picture and based on consensus view and some good old common sense, we adjust our portfolios to suit the specific needs and circumstance of our clients in helping them reach their goals.

So the next time you talk to your financial advisor, find out what supports their particular investment recommendation and if they don’t know or are not sure, think twice before acting upon it.

Remember: The heel bone connected to the ankle bone, the ankle bone connected to the shine bone. Interest rates affect the economy and the economy drives the stock market……..and don’t forget the odd curve ball thrown from certain political leaders as well.

David J. Angas, CEA
Senior Vice President, Financial Advisor
T: 416-777-7110
F: 416-777-7020
david.angas@raymondjames.ca
www.raymondjames.ca/familywealthcounseladvisorygroup

David Angas is a financial advisor with Raymond James Ltd. Information provided is not a solicitation and although obtained from sources considered reliable, is not guaranteed. The view and opinions contained in the