THE LIBRARY

Our client portfolios continue to benefit from robust growth in global equity markets, as well as stable returns in our bond portfolios. Over the last 1 1/2 years, our portfolios have seen mostly double-digit returns (ranging from 8.8% to 22%), for equity proportions between 45-65%. Over that period, the equity portion has averaged 18% and the fixed income portion 6%. Over the last five years, portfolios with an asset allocation plan of 40% fixed income and 60% equities have

There is no doubt that investor anxiety has become the predominant theme since the ongoing, and constantly changing, series of proposed US tariff policies and opposing court challenges. With this anxiety has come increased volatility in global financial markets. As we have discussed in the past, volatility is both down and up. Portfolio returns have remained strong over the last year across all asset classes, as you will see elsewhere in this issue. While positive returns “ba

Global equity markets had a very strong end in 2023 and continue to be the major driver of portfolio returns over the first five months of 2024. The following table is a sample of some of our larger equity sector ETF returns YTD and twelve months to May 31st. Exchange Traded Fund returns to May 31/2024 12 months Year to Date BMO Low Volatility Canadian Equity CAD (ZLB) 8.3% 4.5% Wisdomtree US Total Return Dividend USD (DTD) 22.5% 8.1% iShares Japan Fundamental Index CAD (CJP

The Fall 2022 Foresight discussed our expectations for volatility in financial markets (both up and down) to be a major theme going forward, as markets adjusted to the higher interest rate environment. A year later, we expect that theme to continue. Both the TSX Composite and US S&P 500 have had multiple swings of 5% or more through 2023, masking the fact that both markets are up year-to-date (TSX-4% and S&P 500-18%) - a reasonable-enough performance, given TSX earnings are

On June 7th the Bank of Canada (BoC) raised its key overnight lending rate 25 basis points to 4.75%. The move surprised market-watchers and quickly produced renewed forecasts for an impending recession in Canada. A tremendous amount of angst has been created by a .14 of 1% interest rate increase. Why did the BoC feel it was necessary to jolt the market with a largely unexpected interest rate increase? The most recent inflation data showed a slight uptick of .1 of 1%, which ha

Financial asset price volatility remains the theme for 2022 as we move into the Fall. When one raises the topic of price volatility it often carries a negative connotation. However, volatility swings both ways; while rising prices are seen as positive, not as volatility, falling prices are seen as volatility! Thus far in 2022 we have seen healthy doses of volatility in both directions. At writing, the current direction is up for equity markets, recovering from a recent June l

The first half of 2022 has seen global equity markets correct and inflation return to levels we haven’t seen in decades. Covid lockdowns continue to disrupt the supply chain, especially in China. The Ukrainian conflict has disrupted energy supply as well as agricultural planting in one of Europe’s major bread baskets. Growth stocks and the technology and biotechnology sectors have been particularly hard hit, falling as much as 35% off their recent highs. We have been using th