Monthly Market Insights: January 2019

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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:


Brexiting. British Lawmakers spoke and handed U.K. Prime Minister Teresa May a defeat of her negotiated Brexit deal with the largest margin of loss, the likes of which had not been seen for over a century, by a vote of 430 to 202. The next day, the competency of her government was tabled with a no-confidence vote following, which Ms. May narrowly survived 325 votes to 306. With the political drama abated, at least for now, there still remains no concrete plan or strategy of how the United Kingdom will leave the European Union as the second anniversary deadline of the triggering of Article 50 fast approaches. In the event no withdrawal deal can be reached, the effects would be adverse and wide ranging, affecting many sectors including finance, immigration, and trade, where immediate changes will occur as it defaults to the rules of the World Trade Organisation, with possible positive and negative ramifications as a result. In the longer term, cooperation could be harder to come by; yet more importantly, growth in the U.K., the EU and globally could be negatively affected.

Slow but steady.
As expected by the central bank and by economists, Canada’s economy hit a soft patch with weak data in the month leading up to the busy holiday season. The slump is expected to continue for the short term, for a quarter or two, as oil prices remain depressed and worries persist on global economic health. This was foreseen by the Bank of Canada prompting them to hold off on further interest rate hikes, allowing time for the past hikes to dissipate through the economy. This is appearing to be a common theme with central banks recently as they ease up on monetary policy tightening and remain accommodative. In Canada, although growth has slowed, it remains positive with hopefully enough momentum to make it through the many difficulties facing the world.

Read the full January 2019 Market Insights. 

Read previous Market Insights:
December 2018
November 2018
October 2018

*The information contained in this report was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This report is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell any mutual funds and other securities.