CEDERPOINT

Market update June 03, 2016

”Market update”.

Markets have reached a crossroad. It's hard to say the direction ahead after a long run to the upside.

Statistics in the US are still looking great but consumer spending have started to slow down. On the positive side the housing market is in much better shape, as interest rates remains low.

Market Outlook

China's growth outlook for 2016 is estimated to be lower as their factory outputs have slowed down as well as shipments. Investments have halted and debt is on extremely high levels.

Canada are struggling with the low commodity prices, especially oil. The oil prices will remain at depressed levels, perhaps a range of $40 - $50 a barrel in the year but start to return to more “normal” levels during the first half of 2017.

The SP 500 looks like topping out with yet another possible correction. I'm cautiously optimistic about the near future. I believe we will see a major correction before the markets turns back up again.

The investment climate looks much more difficult. But after a pretty nice upside on the markets in early 2016, we could see a correction before the upside continues, if not the rally comes to an end and the bears will take over very aggressivly as the bulls have been in charge since 2009.

The second half of 2016 will be interesting. It’s going to be a tough trade. But there are still opportunities for those who know where to look. Putting your money in the right sectors could bring some great returns.

By, Pierre Beaini, founder and President of CederPoint