Market Research

Welcome to this month’s Market Strategy. In this edition we share our latest views on the market along with how we’re positioned strategically.

As we enter the last quarter of the year, there is a lot of euphoria thanks to some very strong performance in global equity markets. During such times of complacency, we think it’s worth revisiting when the importance of risk management—as the old saying goes “the best time to buy insurance is when you don’t need insurance.”

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.