There is at least one year for go before the current sideways market ends, says Kim Shannon, president and CIO at Sionna Investment Managers. She told the ‘What Market History Suggests/Canada: Well-positioned in a Sideways Market’ session at the ‘CPBI Pension Summit’ that this could be good news for Canada. Markets have two speeds, she said, bull markets and sideways markets. Sideways markets usually last 15 years and are a period when the excess is taken out of the markets. When P/Es drop to single-digits, they are usually followed by a bull market which is good for equities. However, when equities are in a sideways market, commodities generally perform well. Since the current sideways market may only have one to four years to run, the prospects for commodities are good news for the Canadian economy, she said.
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