At the end of 2019, Canadian growth ground to a halt. Not only are exports hurt by the recent decline in global growth, but domestic economic activity is also reeling, as capex remains soft, households are reluctant to spend, and…
Austerity fatigue has set in. Trump’s big budget deficits and his “I love debt” mantra are the waves of the future. For their part, the Democrats are shifting to the left, with the “Green New Deal”…
Highlights It may seem self-evident that most governments are overly indebted, but both theory and evidence suggest otherwise. Higher debt today does not require higher taxes tomorrow if the growth rate of the economy exceeds the…
There is no doubt that Chinese policymakers are stimulating the economy, but the question is whether they are willing to pull the credit lever as aggressively as they have done in the past. So far, all of the evidence we have…
Highlights Global equity markets have managed to recoup some of last year’s plunge since we upgraded stocks to overweight in late December. The equity rally has been tentative, however, and so far feels more like a technical…
Highlights So What? A 70% tax on Americans with income over $10 million is not far-fetched. Why? The median U.S. voter wants higher taxes on the wealthy; Both populism and geopolitics make it impossible to cut spending; The…
The immediate question for investors in 2019 is whether the downside economic risk has become so pressing that President Xi will shift the policy gear from growth stabilization to total reflation. The evidence suggests that…