A Brighter Outlook

April 11, 2017

Post-election market exuberance carried through the beginning of the first quarter of 2017 before moderating in March. The S&P/TSX Composite Total Return Index ground out a 2.5% gain on the quarter while the S&P 500 Total Return Index fared better, up 6.1% in US dollars and 5.0% when adjusted to Canadian dollars.

MARKET EXPECTATIONS BEGIN TO MODERATE

The lofty market expectations for the Trump administration began to wane by the end of the quarter. The failure to repeal the Affordable (Health) Care Act enacted during the Obama administration was viewed by many as a harbinger of things to come. The market was optimistic that a Republican-controlled House, Senate and Executive would be able to pass business friendly policies with ease, leading to higher earnings in short order. For the time being, the significant divides within the Republican Party seem to have dampened this expectation, which is a view we held from the outset.

Read full Q1-2017 Quarterly Review.

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