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Every other week, we release 5 Minutes for Business, a publication written by Hendrik Brakel, our Senior Director of Economic, Financial and Tax Policy. In these publications, Hendrik briefly describes current issues that affect the Canadian economy and provides insight on what it will mean for Canadians today and the future. In this week’s edition, he looks at how portfolio rebalancing is pulling money out of riskier investments and the effects that is having on global markets.

2016 has been a terrible year for markets: global share prices have fallen 8% while emerging markets shares have fallen 13%—the worst start to a year on record. Currencies are down all over the place, and commodity prices have been hit hard.

This isn’t likely to stop anytime soon: monetary tightening is pulling liquidity out of riskier assets after an unprecedented era of cheap liquidity. But why? Where did all this money go?

Read 5 Minutes for Business to find out.

For more information, please contact Hendrik Brakel.

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