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“A lopsided world….”

“A lopsided world….”

October 4, 2018 | Blog

I’ve been watching closely to see how the markets have been reacting to the various issues facing the world as of late. The larger ones that come to mind would be Trump and trade, Brexit and interest rate increases. As I dig into the major exchanges around the world it is clear they are divided. To put this into perspective and as at the time I’m writing this Blog, here is how the top 10 economies in the world have been performing (excluding currency movement back to Canadian dollars) since January 1st:

#1 The United States
Dow Jones +5.8%
S&P 500 +8.7%
Nasdaq +16%
#2 China -18.6%
#3 Japan +1.4%
#4 Germany -6.6%
#5 United Kingdom (UK) -5.0%
#6 France +0.7%
#7 India +7.1%
#8 Italy -3.2%
#9 Brazil +1.8
#10 Canada -1.2%

A divided world indeed. It reminds me every day of the power of diversification. The importance of reducing risk by allocating investments across various industries, financial instruments and of course by geography.

Please do not hesitate to reach out to us if you’d like to discuss further. In the meantime, I thank you for your business and your continued friendship.

~ Paco

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