BNN: Market Call with William Chin | December 29, 2017

Market Outlook

The two rate hikes by the Bank of Canada really slowed the economy down. Using a four-month total (July to October, the period when rate hikes started), Canada's GDP only increased by 0.2 per cent, compared to 1.1 per cent growth in the same period in 2016. So the Canadian economy will have its work cut out for it going into 2018 because monetary policy does work with a lag. We of course have to worry about NAFTA renegotiations.

Canadian stocks underperformed U.S. stocks rather significantly in 2017. Inside both markets, there are divergences — that is, some stocks are doing better, others not so much. That means if you look carefully enough, you will find companies that do well, even in Canada. So, active management works!

Being the chief technical analyst at Caldwell, I advise on a number of funds, and we place a lot of emphasis on active management. Throughout the show the viewers will be able to see how technical analysis works in real life. Technical analysis is very useful, and it is also a lot easier than most people think.

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