Market Review – November 2019

Hello everyone and welcome back! In this Market Review, our Chief Options Specialist, Jason Ayres, reflects on the November market.

Here’s what you need to know:

• We are witnessing the longest economic expansion in history, despite there being no resolution to the trade war between the U.S. and China
• The economy is currently being driven by consumers
• U.S households are benefiting from lower interest rates, rising disposable income, and a positive wealth effect courtesy of the housing market
• With the U.S. equity markets breaking out to all-time highs, investors continue to push the markets higher by betting on accommodative fiscal and monetary policies to support growth into 2020
• With the Canadian election behind us, focus is now on whether a minority government can provide enough stimulus to continue to drive the economy forward
• For now, the Canadian GDP looks good and the economy seems to be benefiting from positive household balance sheets
• The Bank of Canada decided to leave interest rates unchanged with the expectation that the relatively strong economy should be able to stand on it’s own
• There has also been a positive uptick in the November stock market based on October data
• Despite talks of a recession on the horizon, we believe that there may be more room for stocks to run