Special Post by Ken Wilk, FCSI, CIM, CSWP. Chartered Strategic Wealth Professional, B. Admin
Economic recovery is being challenged globally. The European debt crisis continues to mount and various European countries are experiencing double-dip recessions. China’s growth has also slowed as export demand has declined. The volatility that this causes in the markets reminds us that our global markets are inextricably linked.
Closer to home, the situation has been improving, but economic output still struggles. Unemployment generally contributes to slower growth and causes lower economic output.
Canadian job creation figures released in the spring have been encouraging, indicating that employment may be returning back to normal levels. But, south of the border, the job market remains more sluggish.
The excess amount of debt built up over many years across global financial systems needs to return to more manageable levels. Given the excessive spending at all levels, the move to delever, by governments, certain businesses, and many households, will take some time.
Corporate earnings continue to exceed expectations across many industries. However, concerns about the economy have caused a retrenchment in risk appetite by many corporations that continue to sit on a great deal of cash. As economic confidence returns, the deployment of this capital should help to stimulate growth.
Maintaining Discipline is Critical….
Ken W. Wilk, FCSI, CIM, CSWP.
Chartered Strategic Wealth Professional, B. Admin
Portfolio Manager & Investment Advisor, Certified Retirement Specialist, TD Waterhouse Private Investment Advice
TD Waterhouse Private Investment Advice is a division of TD Waterhouse Canada Inc, a subsidiary of The Toronto-Dominion Bank and a licensed user of The Toronto-Dominion Bank trade-marks. TD Waterhouse Canada Inc – Member CIPF.
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