Martin Lefebvre, CIO and Strategist
While the earnings seasons have positively surprised, markets still haven’t found a way to generate any meaningful momentum and they remain in wait-and-see mode. We are still worried about high valuation levels and what they will mean for returns going forward. However, we cannot ignore the current economic environment which remains healthy, and this economy-vs.-valuations conflict is the reason we remain neutral on equities for the time being. We prefer European equities and would suggest a higher allocation to that region compared to their counterparts.
** I have prepared this commentary to give you my thoughts on various investment alternatives and considerations which may be relevant to your portfolio. This commentary reflects my opinions alone, and may not reflect the views of National Bank Financial Group. In expressing these opinions, I bring my best judgment and professional experience from the perspective of someone who surveys a broad range of investments. Therefore, this report should be viewed as a reflection of my informed opinions rather than analyses produced by the Research Department of National Bank Financial **