Earlier this month at our “Out West” conference where “The Brain” crashed the party in 32 minutes, we had the opportunity to listen to famed Canadian economist, Derek Burleton.
We greatly enjoy hearing from stately folks outside the borders of the US for several reasons …
- What exactly do people in their geographic area think of the situation?
- Receiving differing media reports may lead to a totally different and valuable views.
- Countries with TOTALLY different governments may have clarity that we may take for granted.
Derek Burleton Forecasts
Trump policies will likely not make major changes to the economy. Burleton likens economies to air craft carriers that are very hard to turn and only slightly changed by policy.
Given the above fact, in the short term, Burleton thinks the capital markets could be due for disappointment, as the markets may be pricing in too much optimism currently.
Rates will rise twice in 2017 and again in 2018. Interestingly the fed has said three times this year and recently are saying even more lately….
US Dollar and Oil are both at near term (12 month) highs.
We like the forecasts as a vote of calmness and reasonable expectations. Thanks Derek… we will be watching as this unfolds.
John A. Kvale CFA, CFP