Recently we had a visit from our Chief Economist and I thought I would share the slides from the presentation which I hope you find as interesting as I did.
While market data is encouraging (more than 70% of companies reporting in the S&P 500 beat expectations), the lagging sector continues to be energy which is cyclical in nature and something we own because it represents about one third of our economy. That said, geopolitical events in the middle east (Saudi Arabia) are heating up and we are moving into winter.
While this U.S. rally in particular is significant, I note that GE, a member of the Dow Jones Industrial Average for as long as I can member, cut their dividend 50% yesterday.
The slides pertaining to Canadian real estate might also be of interest.