Going into 2022, many observers (including us) had a positive view on the economy and markets in general. This was predicated on a receding pandemic – which appears to be playing out. On today’s economic horizon, a different view emerges.
We found that despite strong year-end results, 2021 was full of surprises. Although 2022 may not bring us fully back to normal, we think it will be another big step towards normalcy, which is positive for the economic outlook.
The heatwave that Canadians recently experienced is somewhat of a precursor to what’s shaping up to be a scorcher of a summer from an economic standpoint. With 67% of Canadians having received at least one dose of the vaccine and provinces lifting even more restrictions, this will unleash many economic catalysts that we’re looking forward to.
Though recent lockdown measures have come into effect across Canada, we view this as merely a detour on the gradual return to normal. Our Quarterly Outlook Commentary reflects this sense of optimism as we gain a greater understanding of what the new normal will look like — and when it may arrive.
In the first commentary of the year, we discuss key developments that will be influencing the markets around the globe in 2021.
The Bank of Japan surprised markets when they moved to a negative interest rate. In our latest blog, we discuss what negative interest rates mean, and how this impacts our portfolio.