RESEARCH CONTENT
Previous macro research has pointed to a difficult Canadian macro environment due to the build up of excess debt and the consequence of high interest rates on that debt and the economy.
The private sector is stalling and disinflation has set in – the real underlying data is extremely weak and once lagging data catches up, could well be below 1%.
Because of the housing unaffordability issue, perhaps only a ZIRP will lead to increased lending, as seen post GFC and more recently in Sweden. This is not priced into markets.
This research discusses the impacts on Canadian fixed income and how changes to Canadian interest rates compared to those in other countries could impact the CAD.
The report discusses some interesting investment themes for the Canadian markets, highlighting specific ideas that are supported by developing market sentiment.
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