December 18, 2018
Martin Pelletier: The Bank of Canada is still underestimating the risks to the economy
86% of Canadian CFOs believe their country will be in recession no later than the end of 2019
So far, 2018 is proving to be quite the challenging year for investors, with the S&P TSX losing more than eight per cent and bond markets losing more than 1.5 to two per cent. As a result, most Canadian balanced portfolios have fallen nearly 6 per cent this year.
It is at least encouraging to see that those in charge of the country’s economic policy are finally starting to take their heads out of the sand and are moving away from using terms such as “welcome symptoms of normalization” to describe higher bond yields and volatile stock markets, and “solid momentum” when assessing the economic outlook.
However, despite the recent acknowledgement in the Bank of Canada’s December update that there are some risks “to growth and inflation from financial vulnerabilities” — after stubbornly defending their position since October — we think they are still underestimating the extent of what potentially lies ahead.
Canada and EU Likely To Be In Recession By 2019
89% Of CFO’s In Canada 67% Of CFO’s In Europe
How Is An Operator Likely To Respond To The Request For A 30%+ Price Drop?
Martin Pelletier: The Bank of Canada is still underestimating the risks to the economy
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