Month in Review - December 2022
The market reversed course in December after hitting the upper band of the trading channel (just above the 200-day moving average) that it traded in during 2022. The S&P 500 finished down 5.2% (in CAD) and the TSX Composite Index fell 4.9%.
The Canadian Universe Bond Index also came in weaker in December than in the previous two months, finishing down at 1.5%. Once again, the volatility of bonds remains high. Every economic newsprint is being over-analyzed to try and game central bank policy and the impact on interest rates. Furthermore, while inflation is coming down in the short run, it may persist at higher levels over the long run, as two structural headwinds remain in place: limited oil supply (and refining capacity) and tight labor markets in the service sector.
Continue Reading the December 2022 Month in Review Newsletter