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<v ->I'm Jenipher Nevin,</v>

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and today I'm joined by Patrick McCalmont,

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a portfolio manager at Canso Investment Counsel.

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Thank you for joining us today.

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Now, we've noticed in the top of the "Observer,"

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we have a disclaimer,

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and this is something that hasn't been included before.

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Why now?

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<v ->Canso has always been quite contrarian,</v>

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and today is no different.

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We think there's a growing risk in the markets,

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that bond yields and inflation could be higher

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than the market consensus is expecting.

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With bond yields being so low,

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even inflation of 3 to 4%,

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could be a major shock to markets.

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<v ->Now, hasn't Trump said that there is no inflation?</v>

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<v ->In the "Market Observer,"</v>

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we take a close look at both US CPI

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and the infamous "Economist's Big Mac" inflation index

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to find out,

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that perhaps inflation is a bit of an inconvenient truth

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for those like Trump,

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who want to see lower interest rates.

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<v ->And has Trump's criticism of the Fed</v>

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been effective in influencing policy?

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<v ->Yeah, at Canso, Jenipher,</v>

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we don't think it's happenstance

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that the Fed has halted its interest rate increases

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in the face of growing pressure from the president.

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And now President Trump is actually moving

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to get a more trusted Federal Reserve Board

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by potentially appointing supporters

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in Herman Cain and Stephen Moore.

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<v ->And how has the market reacted to all of this?</v>

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<v ->Market seems to love this.</v>

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But ultimately,

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we don't think that fueling an already strong economy

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with even looser monetary policy

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is something that's gonna end well.

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<v ->Well, thank you, Patrick,</v>

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for your insight.

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For more information,

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please go to the Canso Funds website

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and read our latest edition of the "Market Observer."