With markets sloshing back and forth, it's understandable if investors are beginning to feel a little seasick. This back-and-forth week saw stock prices of Canadian banks - including the Royal Bank, fall in response to loan exposure in the Oil & Gas sector and to flat earnings.
Globally, Europe is waiting on Britain's decision on whether to stay in the European Union, adding to market volatility. OPEC countries have failed to come to any agreement on output levels so oil continues to be under pressure. Predictably, Central Banks remain committed to low interest rates and governments -including here in Canada, are resorting to deficit spending to stimulate economic growth.
So where does all this mean? Our view is that markets will continue to challenge investors in the near term. That requires a commitment to measure performance over time, not over night. We remain confident that the defensive positions within out portfolios will weather this market environment. More to come next week.