“Instead of a crystal ball, you’ve got a snow globe,” he said. “So it tends to be a little challenging to have any definitive outlook.”
Last month’s job stagnation was “another marker that suggests the economy is on a weak footing,” Briggs says. Canada only added 1,100 jobs, according to StatCan’s latest employment report. Inflation has also remained steady, something which could rise further if Trump’s full tariffs go ahead.
While other periods of volatility would at least provide a light at the end of the tunnel, Briggs suggests there is nothing to suggest that uncertainty will wane in the future, making it difficult for financial advisors to make solid market predictions.
“Any way you slice it, uncertainty is not growth positive. People tend to sit on their hands, businesses don’t invest,” he said. “Activity grinds down to a bare minimum because you have no visibility on what’s occurring, especially when it’s all policy driven.”
The BoC’s political neutrality and high levels of data dependency compared to other central banks allows it to stay nimble with its decision-making, according to Jack Manley, executive Director and global market strategist at J.P. Morgan Asset Management Canada. He echoed Briggs in suggesting that the expected rate cuts are being used as a defence against any further tariff announcements.
