Central Banks Shift Course - Earnings - PPL, SIA, SPB, CPX, T
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The TSX Composite has increased 12.9% and 12.6% for the Dow Jones Index since the Dec-2018 sell-off. This recovery is being buoyed by friendly central banks. This includes the US and most all other globally significant central banks.
It might also be the early days of a long term shift in global monetary policy. After four years of pounding the drum for higher rates, central banks are sensing the need for a policy adjustment, and markets are responding favourably.
The greater unknown is how long interest rates will remain relatively unchanged from where they are now. The impact on values of rates remaining low for an extended time is likely not yet fully built into valuations. Comments this week track how moderating interest rates will be positive for markets, even more so when a company's earnings and dividends can continue to grow.
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