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A Rough First Half
July 20, 2022
In his mid-year update, Wayne Gillespie provides his perspectives on a tough period for investors as high inflation continues to weigh on global markets.
“With uncertainty being high and sentiment being at the lowest it has been in over 20 years, there has never been a better time to have a plan in place and to execute on it with your Financial Advisor.”
Here are a few highlights:
- Canadian stocks have entered a “correction” while the S&P 500 is now in bear market territory.
- Bond markets have already priced in the remaining rate increases for 2022.
- Central Bank efforts to cool inflation have resulted in yields soaring causing the U.S. Treasury Yield Curve to invert
- We believe there is more monetary tightening to come than we thought three months ago
- We believe the next few quarters will be characterized by high inflation, slower growth, and market volatility.
- Investors are currently searching for a bottom, and typically, we see markets rally 12 months after inflation peaks.
You may have noticed recent headlines focusing on trade tensions between Canada and the United States.
The recent imposition of U.S. tariffs on Canada has fuelled a surge in Canadian nationalism. In recent weeks, investors have increasingly asked, "How much of my portfolio is in U.S. equities?"
Gain a better understanding of Canada’s government sponsored plans for supporting home ownership with our infographic.
