…just when we thought we had a handle on all the risks.
This year has been all about Ukraine, the economy and bad weather. Frankly it was all getting a bit tired and markets settled into complacency.
Suddenly the tectonic plates have shifted. The Tea Party just took out the #2 Republican in Washington that could change everything. It’s been 7 months since the debt ceiling fight and markets thought Washington had moved on but now bi-partisan cooperation is now off the table.
Meanwhile, if you were under the impression that the US had pacified Iraq this week has been a rude awakening. Mosul, the second largest city, fell to rebels and so did Tikrit. The risks to oil are definitely shifting to the upside and Canadian dollar strength often frontruns oil.
