Original article from La Presse – LE PLACEMENT À ÉVITER by RICHARD DUFOUR.
1. What was this week’s most important event on the markets?
Despite last Friday’s deadly attacks in Paris and the subsequent aftermath of the tragedy, the markets defied expectations and rallied this past Monday to post their strongest session in weeks.
In addition to the stock markets being oversold leading up to the Paris attacks, investors have increasingly realized these tragic events have a more muted impact on economies and markets, despite the terrorists’ best efforts to create chaos and fear around the world. While there could be some fallout in the area of travel, which could undermine transportation, hotel and hospitality, retail and luxury stocks near term, the economy should prevail over the longer term, as consumption is deferred rather than eliminated. Also, the European Central Bank is likely to continue its quantitative easing program.