The Federal Reserve hiked its short-term rate in the US in December 2016 and is expected to do so again, perhaps as many as 3–4 times in 2017.
Trump’s pro-growth vision has awakened the expectation of inflation, which is why longer-term bond yields climbed after he indicated his mandate for increased growth (bond prices went down).
Economic growth = expected higher inflation = higher interest rates = lower bond prices (which is actually counterproductive to portfolios with a lot of fixed income exposure)
Thus, the (normal) safety of bonds has instead been a detractor to balanced fund mandates, such as the Church’s portfolio.
Below please find TD Asset Management’s (TDAM) outlook for 2017:
OUTLOOK FOR 2017
Year in review: A look back at 2016
• During the year, the Bank of Canada remained on hold, keeping its key rate steady at 0.5%, where TDAM expects it to remain for some time to come.
• There were a number of surprises throughout the year, namely Britain voting to exit the European Union, Donald Trump wining the U.S. election and OPEC members reaching a deal to reduce oil production.
• Volatility continued to flare up periodically throughout 2016, serving as a reminder to investors to take a long-term approach, the importance of investing in high quality assets and maximizing the diversification benefits within their portfolios
Christmas Party with Potluck and Santa’s Gift
Posted on December 3, 2016 by admin
Christmas Party is on December 4th after service with Potluck lunch. Please let Sandi Peters know if you will be bringing any children (first name, age, boy or girl) so that there will be a gift from Santa for them at the Christmas Potluck & Party on Sunday, December 4th.
Misook and Noelbright Play Cello Duet