After the worst performance in 10 years, the stock market should perform well in 2019
Economically speaking, 2018 was marked by continued economic expansion south of the border for a ninth consecutive year. GDP growth was nearly 3% and the unemployment rate is at its lowest in almost 50 years.
However, the year was markedly less favourable for financial markets. Despite an exceptional rise in U.S.
business profits, the Fed’s decision to continue normalizing its monetary policy and the escalation in U.S.‐China trade tensions have created a highly volatile environment on Wall Street. In fact, there were more than 80 sessions showing daily fluctuations exceeding 1% compared to barely eight in 2017. The risk premium on corporate bonds also increased substantially last quarter from an unusually low level.