After a long and hot summer, investors return from holidays to near peak U.S. and Canadian equity markets and subdued volatility. Adam Murl, Head of Research, discusses why we think this goldilocks period will be quickly challenged in September by the three bears of trade wars, Italy and Emerging Markets. Although we maintain exposure to risk assets, our sector allocations are shifting defensively and we note the three bears should be strong determinants on the direction of markets from here.
