Eyes wide open

Aug 24 20:08 2019 Print This Article

  By Guest Blogger Doug Rowat

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We’re bullish on equity markets.

And for good reason. First, it far more often pays to have a positive market view than a negative view because bear markets typically last only 1-2 years whereas bull markets last 8-9 years. All things being equal, the odds are heavily in your favour to be bullish. But aside from what market history tells us, we also view current market conditions favourably: corporations remain profitable with Q2 US earnings season playing out better than many expected, US GDP is poised to grow at a reasonable 2.3% this year, valuations are not overextended with the S&P 500, for example, trading at a price-to-earnings discount to its three-year average (18.9x vs 20.2x), the world is (mostly) a peaceful place with developed nations, in particular, not at war, and the world’s largest central bank, the Federal Reserve, has some capacity (and a clear willingness) to stabilize markets if the economic picture deteriorates further.

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About Article Author

Greater Fool

Author, Garth Turner has been a member of the Canadian Parliamant for nine years, serving as Member of Parliament, Cabinet Minister (in charge of Canada Revenue Agency), national leadership contender (Progressive Conservative Party of Canada), House of Commons Standing Committee member and chairman (Consumer and Corporate Affairs, Finance), Special Advisor to the Leader of the Official Opposition. He is a member of the Privy Council of Canada. In addition, Garth is an ambitious entrepreneur – founder and CEO of Canada’s largest independent producer of network television, providing programming to CTV, Global, YTV and others. He founded and successfully operated chain of six community newspapers in Ontario as well as founded and operated eco-tourism and hospitality company aggregating and restoring heritage properties.

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