Gaurav Dhiman / October 13, 2016

Income Strategy Third Quarter Review

The third quarter of 2016 gave us further indication of the diverging trends taking hold in the US and Canadian economies leading to a divergence in their respective monetary policy stance.

The US economy continued to grow, albeit at low-to-moderate growth, driven primarily by strong consumer spending. While business investments have been largely non-existent/detractor to growth for the past few quarters, we believe that a stabilization in commodity prices should see this trend reverse in the coming quarters. Various inflation measures still remain below the 2% target level while employment numbers have been strong bringing the US closer to full employment.