Market Research

Welcome to this month’s Market Strategy. In this edition we share some strategies that we think are very well suited for a broader equity and bond market that is starting to show some cracks as we head into a period of seasonal weakness. Fortunately, having downside protection embedded within our client portfolios hasn’t cost much as we have been doing quite well capturing roughly 80 per cent of the rally this year as measured by TWC Risk-Managed fund against our global passive index (60 per cent Global Vanguard bond, 10 per cent S&P TSX TR, 30 per cent MSCI Global Equity).

Welcome to this month’s Market Strategy. This edition we take a closer look at what caused the huge spike in volatility sending global markets suddenly correcting before subsequently rebounding in short order. In particular, we examine what is called “the yen carry trade” and how central bank policy and currency markets have had an outsized influence on equity markets which has created some opportunities as well as some new risks.

Welcome to this month’s Market Strategy. This upcoming earnings season is going to be an important one, especially given the rising gap between share price performance and the underlying fundamentals, resulting in extreme market concentration. Markets are highly imbalanced, and we hope that it can center itself with a recovery by the non-tech segments of the global market instead of a correction from the current market leaders.

Welcome to this month’s Market Strategy. Markets continue to be led higher by the American powerhouse Nvidia and other mega cap tech while bullish bets on the broader global economy have fallen to decade lows if oil speculators provide any indication of what’s ahead. Meanwhile, asset managers are going all-in on the falling interest rate trade by shorting the U.S. dollar and buying U.S. treasuries. This has pushed the U.S. Dollar Index (DXY) down nearly 2 per cent and 20-year treasuries up over 3 per cent in May.