Market Review – July 2019

As we enter the second half of the year, our Chief Options Specialist, Jason Ayres, provides a market overview for July 2019. Here’s what is happening in the market:

• The old saying that “the market climbs a wall of worry” seems to be quite fitting as uncertainties surrounding trade relations between the U.S. and China will likely continue into 2020.
• The inversion of the yield curve caused many investors and money managers to proceed with caution due to the risk of a slowing economy and potential recession.
• Yet, markets have moved back up because of expectations for Central banks to role back interests rates and because of the “Fear of Missing Out” (FOMO)
• The Canadian Business outlook was relatively positive and jobless numbers are at a 40-year low, with wages on the rise.
• U.S business numbers came in better than expected, which is great for the economy but not for the likelihood of a interest rate decrease.
• Trump continues to bully the Feds for a rate cut believing that a cheaper dollar will help the U.S. remain competitive in the global arena.