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The Learning Centre:

Important: Capital Market Update

January 2, 2019

With recent discussions regarding the potential of a 2019 recession, many Educators investors have a heightened awareness of the state of the markets. For these investors, Educators will be providing updates on market conditions when appropriate. (For more information on the traditional causes of a recession and how an investor can prepare, click here.)

December 2018 marked the end of a volatile year for the markets, and a month that saw the lowest levels for both Canadian and U.S. equity market indices. By end of day December 31, the market featured:

  • Canadian and U.S. equity market indices moving higher
  • Canada and U.S. 10-year Treasury yields 35 basis points lower than the start of December (with Canada yields at 1.89% and U.S. Treasury yields at 2.65%)
  • A strengthening of the U.S. dollar, as a result of the government shutdown and U.S.-China trade talks
  • A more constructive sentiment in the Canadian corporate credit market

The morning of January 2 saw calm markets. The short trading week will likely be impacted by the release of U.S. and Canada employment data.


The information provided is general in nature and is provided with the understanding that it may not be relied upon as, nor considered to be, the rendering of tax, legal, accounting or professional advice. Please ensure to consult your accountant and/or legal advisor for specific advice related to your circumstances. Educators Financial Group will not be held responsible or liable for any losses, costs, damages or expenses incurred by reason of reliance as a result of the aforementioned information. The information presented was obtained from sources that are believed to be reliable. However, Educators Financial Group cannot guarantee their completeness or accuracy.

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