What we’re waiting for now is to see earnings rebound. Earnings took a steep dive alongside weaker oil prices, but they look to be on the cusp of moving higher. And we need that to happen for the markets to break out.
Back in January many financial experts were predicting an imminent recession. Equity markets at home and abroad dropped by roughly 10 per cent that month, oil prices were plummeting and investors were worried. Since then, fears have subsided and equities have recovered, with the S&P/TSX Composite Index now up about 7.5 per cent since the start of the year.
No one can be certain where things go from here, but Les Grober, Senior-Vice President and Head of Asset Allocation for Investors Group, and manager of the company’s Maestro Portfolios, says we are in for a more volatile time than we have been in the past. More spoke to Grober about why we’re seeing higher volatility and what investors can do about it.