Market volatility will continue into 2016, but investors shouldn’t be discouraged. They’ll still benefit more from equities than fixed income, and there may be some stabilization of commodities throughout the year, says an outlook report released by AGF Investments.
What’s more, “China is committed to creating stimulus and supporting its economy. We look for a soft landing when it comes to [China’s] slowing GDP growth.”
Within Europe, the report says, “The impact of QE should result in improvements in the underlying European economies moving into the second half of 2016. [And], Japanese equities should continue to benefit from substantial corporate reforms and strong valuation support.”
Still, even as growth in Europe improves, “global growth prospects remain relatively anaemic.”
Turning to Canada, the report encourages investors to remain cautious, given economic improvement will depend in the strengthening of commodities.
This article was originally published on Benefits Canada‘s companion site, Advisor.ca