2019 Genus Quarterly Review Q3

With the increased noise around the markets and the economy, we continue to focus on fundamental data. We are still living under the monetary regime of last year where we saw the US Federal Reserve raise rates four times as impacts from recent rate cuts will not be felt until next year. The softer economic data has seen further slowdown as we near the bottom of the valley. This is the time in the cycle we need to be the most cautious as it is when the economy is the most prone to accidents which could drive us to the bottom. The Canadian election consensus appear to be a Liberal minority, this will increase risk in Alberta as well as Canada and we are looking at opportunities to diversify some bond exposure out of Canada. As we continue to make our way through the valley, we will be diligently watching liquidity, specifically money supply, and risk measures to see if there is any light at the end of the tunnel.