Australian and Canadian Dollar Weakness Overdone?

Our FX strategists argue that pessimism toward the Canadian and Australian dollars may be overdone. Both Canada and Australia posted weak December employment reports, which weighed on their currencies. For now, we are hesitant to read too much … [More.]

S&P 500: Too Soon For A Top

A potent mix of super easy monetary policy and strengthening non-inflationary economic growth is extending the equity market sweet spot. A more robust pace of business activity will boost revenue growth and support a modest U.S. profit … [More.]

U.S. Payrolls: The December Thud

The December payroll number (74,000) was such a disappointment, it seems incredible. The vast majority of December economic data points suggested that the pace of economic growth is accelerating, and that the job outlook is improving. Indeed, … [More.]

Is Bond Valuation Stretched?

While the economic data remain bond-bearish, the jump in global yields over the past month raises the question of whether the bear market has moved ahead of itself. The weighted average of 10-year bond yields in the major developed markets has … [More.]

Outlook For Canada And Australia

It is widely known that both Canada and Australia avoided the banking/housing meltdown and their fiscal position is much better than in most other developed economies. However, there are no grounds for complacency in either case. In both … [More.]