Recession Lurks In Shadows

This year is already on a positive ascent with January ending in one of the strongest monthly returns seen in years, says Greg Taylor, chief investment officer at Purpose Investments. However, this doesn’t mean markets are in the clear with talks of a recession and central banks cutting rates continuing to lurk in the shadows. There are several events and themes investors should keep in mind this year These include an earnings compression which could occur in American markets, but based on fourth quarter reports and what has been seen so far, this year has been far from the disaster predicted. As well, recent data from central banks offer an optimistic outlook that suggests it is nearing the end of the tightening cycle. At the same time, a massive ‘re-risking’ of portfolios is occurring amongst investors attempting to keep up with the market as most of the companies and sectors that were the worst performers last year were the best for the month. He says the current market offers a great time to look at active strategies of investing to be able to adjust their positioning according to the macro environment and the conditions set in front of them.