Attractive Opportunities Remain Elusive

Here’s What We’re Thinking

Written by Alison Plaxin
April 20, 2015

Investment Strategy: Attractive opportunities remain elusive in near-term.

Having raised cash positions recently, we continue to view Canadian and U.S. equities as uncompelling in the near-term. While the ebb and flow of Q1 reporting season presents a distraction from the macro environment, our overall concerns have not dissipated; namely valuation (S&P500 P/E at 17x forward 12-month, TSX at 18x), Fed rate hike timetable, geopolitical developments, commodity price volatility, and technical challenges. As our medium-term outlook remains constructive, we think investors can afford to be patient in deploying cash into equity markets.

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