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Market commentary - Sept 6, 2016

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The Canadian economy shrank in the second quarter of the year but no surprise there ... for the Bank of Canada this means very little since there remains little room for governor Stephen Poloz to manoeuvre until the US Chair Janet Yellen raises rates there.  Central Banks around the world have driven rates to historic lows and all the way into negative territory. As of August nearly $16 billion of government bonds worldwide were offering yields below zero. While today's report fell below their expectations, the temporary nature of the setback does not warrant a monetary response and the BOC will likely hold rates at their current levels for an extended period – possibly into 2018 ...

China is still in adjustment mode. Debt levels appear overextended and credit growth cannot continue to carry the weight of the economy indefinitely. Yet regardless of the exact measure, China’s national leverage is still rising rapidly. An economy in adjustment is ripe for regular interruptions. As China goes, so go its neighbours … The pull-back of exports largely reflects weaker-than-expected growth in the U.S., particularly in business investment. A more positive outlook south of the border should translate into a resumption of export growth, bringing the rotation back on track for a whole host of nations.

Volatility abounds in the markets and 'unpredictable' sums up much of the global scene, except ... Monthly High Income fund MHI and the Strategic Dividend Bundle SDB consistently deliver. Year-to-date numbers are 6.74% and 11.19% respectively. Their moderate measured risk levels combined with growing returns continues to render a positive risk reward experience for your portfolio.