Yesterday, I participated in the Empire Club of Canada Annual Investment Outlook Luncheon and gave remarks on the Outlook for Risks to Capital Markets. While we look for another year of relatively healthy growth in the global economy, new risks and vulnerabilities have emerged in global capital markets. First, the fragmentation of international regulation is a real concern as it impairs market efficiency, and cross-border capital and investment flows. Second, markets have shown a disturbing trend for liquidity to evaporate in times of stress, when needed the most. Third, stock indices have become more and more concentrated in portfolios, raising concerns about the impact on financial markets, if asset prices decline sharply. And, finally, the increased frequency and sophistication of cyber-attacks can not only cause financial loss and breach of confidentiality, but interfere with trading venues and capital markets more generally. I concluded my remarks by offering some recommendations to guard against potential risks. If interested, you can watch a video of my speech here.
My presentation received media attention, including the Financial Post, Investment Executive, Wealth Professional and Advisor.ca. I was also interviewed by BNN’s Catherine Murray. The BNN interview can be accessed by clicking here.