‘When things are very expensive with this much uncertainty, then it is time to take profits and watch cautiously from the sidelines.’
Beautiful tariffs make beautiful markets
Canso’s July Market Observer begins by expressing incredulity at our current reality. After the chaos of April’s tariff rollercoaster, rising equity markets and tightening credit spreads weren’t most experts’ first choice for a likely outcome, but that’s what has happened.
The S&P 500 surpassed its February all-time high by 2.2%, up 26% from its bottom on April 8, which puts it up 6.6% for the year. The Canadian S&P/TSX Composite Index is up 8%, and the non-U.S. MSCI EAFE (Europe, Australasia and Far East) is up 19.5%.
This story is brought to you by Canso Investment Counsel Ltd.