There was very little holding the U.S. and Canadian stock markets back in December. We had identified a possible headwind with a proposed round of tariffs set to take effect on December 15th. However, with a “Phase 1” trade agreement reached between the U.S. and China instead, and Trump’s impeachment being of no consequence to the markets, investor optimism continued to push stocks higher into the close of 2019.
U.S. and Canadian stocks continued to extend their gains through the month of November and into December, with consumer and service-based sectors leading the charge.
Markets continued to push higher against a background of positive consumer sentiment surveys, low interest rates and supportive central banks, plus a favorable labour market overall, albeit recent Canadian employment numbers have turned sharply negative.
The end of June marked the close of the second quarter of 2019 and the halfway point in the year. In reflecting on the past 6 months, the old saying that the market climbs a wall of worry really seems to be quite fitting.
