Diane Pang / July 6, 2018

Income Strategy Year Second Quarter Review

This quarter was not short of drama: global volatility continued with trade wars heating up between the U.S. and China as other countries, companies and consumers watched with concern on what/how/when this will impact them; the European Central Bank motioned that it would end 3 years of quantitative easing by December but will now keep interest rates low until mid 2019; new Italian PM promised radical change causing an increase in Italian bond yields. Closer to home, NAFTA negotiations are on going with the potential of a new agreement not signed until after the U.S.’ midterm elections in early November, while the U.S. slapped tariffs on Canadian steel and aluminum products June 1st and the Mexican elections concluded with a left-wing, anti-establishment government being elected on a radical reform platform.