- Equity markets rallied this week alongside another move down in bond yields.
- The S&P 500 rose 2.2%, led by banks, materials and consumer discretionary, but all sectors posted gains.
- Meantime, the TSX gained 2.7% as rate sensitives sprung back to life, and technology jumped almost 7%.
Bottom Line: The latest U.S. inflation number is a very bullish sign for markets, because lower inflation means that we’re closer to the end of the rate cycle.
Bottom Line: We’re bullish heading into the end of the year, but we’ll be closely monitoring spending during the holiday season, as it could foreshadow what will happen in 2024.
The Magnificent Seven
Bottom Line: Over a three-to-five-year time horizon, many of the higher-performing innovation companies are the type of companies we would favour.
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