Monthly Market Insights: January 2017

Financial graphs on a computer
Every month, Cambrian shares the Monthly Economic Commentary provided by our partners at Credential Financial Inc.. If you're looking for advice or have questions about the Monthly Economic Commentary, advisors are here to answer your questions.

Key Takeaways:

Housing in Canada. Over the last few years, concerns over the growth and sustainability of Canada’s housing market have been rising; in particular, whether any correction would be a hard or soft landing. The latest data provide mixed signals as the number of home starts across the country rose, while the request for permits for future home buildings declined in December. But the greater focus on homebuyers’ minds are prices, which continue to rise for both existing and new homes on a national basis. Regionally, however, deviations can be seen between markets, as Toronto tops all gainers and Vancouver is in the midst of a slow-down. With the possibility of tightening mortgage rules, government regulations, and rising borrowing rates, the housing market may see some weakness in 2017, with markets in Eastern Canada leading the way.

Trump takes residency at 1600 Pennsylvania Avenue. With the keys to his new home, President Trump took control of the world’s largest economy, and presumably set in motion the promises he made during his campaign. Of the many actions slated for his first 100 days, trade is a top priority. Trump has withdrawn from the Trans-Pacific Partnership and pledges to renegotiate the North American Free Trade Agreement. Both are likely to affect Canada. Trump is also set to change or eliminate the Affordable Care Act, or Obamacare, having made it the subject of his first executive order, signed just hours after his installment as the 45th U.S. President. Finally, he is expected to focus heavily on job creation though infrastructure spending and tax reform. Though only a few weeks into his term, Trump (along with his domestic and foreign policies) is shaping up to be game-changer for the U.S. and for the world.

Read the full January Market Insights