Equity Over Fixed Income Recommendation Remains In Place

Here's What We're Thinking

July 13, 2017

We leave our overweight in equities and underweight in fixed income recommendation in place. We continue to believe that assets and sectors sensitive to the economic cycle should outperform in this late stage of the cycle. Seasonal headwinds during Q3 could offer attractive entry points for new money.

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Summer Volatility Upon Us; Healthy Sector Rotation Sets In

Here's What We're Thinking

June 28, 2017

Global markets have generally moved sideways in wide ranges over the past couple of weeks with equity and bond markets largely flat while commodities have slid further as currencies gained in relation to the U.S. dollar. Global economic data trends have remained mostly consistent with forecasts for stronger growth this year, underpinning improved corporate revenue and earnings outlooks. However, a notable exception has been the data flow in the U.S. where recent modest disappointments have led to some marking down 2017 GDP forecasts (including the IMF), resulting in the consensus gravitating to our own house view (2.2%). Central bank policy has also taken centre stage with policymakers in the U.S., Canada, the U.K. and Europe expressing increasingly hawkish biases for the future direction of policy.

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