Third Quarter Strategy Review
Even though the economies north and south of the border continue to muddle along, some economists are describing the current environment, particularly in the US, as one of the best in a long time. The combination of synchronized global economic growth, low inflation, a reasonably accommodative central bank and rising corporate earnings are quite a powerful combination that could keep this market going for a while yet. The final reading for US second quarter GDP ticked up to 3.1% from 3.0%. This would normally suggest a reasonably strong hand-off for the back half of 2017, although we may see a hit in the third quarter due to missing output caused by hurricanes Irma and Harvey. This may cause a bigger rebound in the fourth quarter as rebuilding and spending on reconstruction takes place.