Blog Layout
Another Volatile Quarter
Wayne Gillespie • Apr 21, 2022
In his Q1 market update, Wayne Gillespie offers his perspectives on a volatile quarter where inflation and concerns over Ukraine are influencing global markets.
“Broadly speaking, uncertainty is high across all facets of the fixed income spectrum, not only because of the incidents involving Ukraine, but also a flattening of the yield curve as well as inflation fears.”
Here are a few highlights:
- Canadian markets are outperforming their counterparts due to a rally in commodities triggered by the Russian invasion of Ukraine.
- The rally in commodities is fueling increased concerns about rising inflation.
- Canada’s economy has now extended its monthly gains to 10 leading economists to predict that The Bank of Canada will raise rates by .50 bps at each of the next three sessions.
- Global fixed-income markets experienced losses over the quarter largely due to the uncertainty concerning Ukraine, the flattening of the yield curve, and inflation fears.
- IPC’s Portfolio Management Team continues to favour a diversified stance while maintaining exposure to strategies that can protect against volatility
Canada’s Federal Government released its new budget for the year ahead providing key details on important support programs. Our budget Infographic provides the key highlights.
The third week of February marked a crucial period for IPC Private Wealth clients, featuring up to four major portfolio events.
In his Q1 update, Rana notes that the financial markets have started 2024 on a strong note, with the S&P 500 climbing approximately 13% (CDN), marking the most robust start since 2019. This surge brings us to his topics for discussion: the psychological phenomena’s of FOMO (Fear of Missing Out) and FUD (Fear, Uncertainty, and Doubt).
