Here’s What We’re Thinking – March 23, 2016

Investment Strategy: Maintaining preference for Canadian equities; Fed-related risks decline

Written by Alison Plaxin
March 29, 2016

• Investment Strategy:  Maintaining preference for Canadian equities

The strong correlation between oil prices and global equity markets has been maintained as the former has recovered over 50% from mid-February lows. The six-week oil price rally has lifted the sentiment on most risk assets, including the CAD and the resource heavy S&P/TSX Composite Index. Last week’s toned down rhetoric from the U.S. Federal Reserve has also reduced some downside risk as the Fed’s view of future interest rate increases now aligns more closely with current market consensus.

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