Drummond Brodeur's blog
Given the number of inquiries I’ve received regarding the recent sell-off in global equity markets, I thought I’d share a few quick observations from Signature’s perspective.
Next week, Eric will be holding a webcast along with other team members, so a more detailed perspective will also soon be available.
The quick conclusion is that while we want to respect the changes taking place in terms of market expectations, we perceive the current correction as setting up an opportunity to increase exposure to risk assets and not a time for fear or panic.
At the time of writing this blog, we are still early in the unfolding political drama between Russia and the Ukraine. The markets have taken a bit of a knock as a result. Having read various articles and listened to several calls, let me share a few of the early views that are emerging.
One of the big questions facing markets today involves the relationship between the weather and the economy. There is no doubt that this has been a brutal winter (-15°C as I'm writing and it is already March!) and that it has contributed to the string of weaker than expected economic data out of the U.S. The trouble is we have no idea how much of the weakness is weather related and how much reflects a real softness in the underlying economy, hence calling into question the consensus view of a U.S. economic acceleration.
I recently returned from a week in Asia where I was looking to get a better sense of China's reform agenda and a one year update on Abenomics in Japan. You may recall a piece I wrote a year ago (Japan: Die Another Day) where I expressed skepticism regarding Japan's ability to deliver on their structural reform agenda. I would like to share a few of the observations and insights I gained on my recent trip.