Articles & Insights

As we approach the end of a whirlwind year it is important to continue to look forward to what is on the horizon. Many of the events of the year have come as a surprise to many, along with how long they have lasted.

An uphill start to 2022: War in Ukraine and Fed rate tightening. The first few months of 2022 have been rough for investors.

The investment landscape during the past couple of years has looked a bit like that of a road trip, complete with detours and bumps along the way.

So much has happened over the last 18 months and the rate of change seems to continuously accelerate. It is so easy to get caught up in headlines, certainly within the economic sphere among many others. These headlines can cause confusion, prompt questions, and cause many people to feel uncomfortable about the future. Will inflation become structural? Is the market too high? What happens if the market has a correction? Have I saved or am I saving enough to outpace the rising cost of living? These questions are normal, natural, and relevant at any stage of life and during any phase of an economical cycle.

It has now been more than six months since the World Health Organization declared the global COVID-19 pandemic, upending our home and working lives. As the initial wave of infections subsided and the spread of the virus stabilized through the summer months in most parts of Canada, we adapted to the “new normal.” Heading into the fall, infection rates in some provinces are rising again, raising the possibility of further restrictions to limit the spread of the virus.

It's been a great year for the stock market. But it's been a terrible year for the economy. How does that make sense?

Necessity is the mother of invention. Perhaps the greatest modern example occurred in 1970 when the Apollo 13 astronauts created a carbon dioxide scrubber out of socks, duct tape and a few other random parts floating about their cabin. But isn’t necessity a close cousin of adversity?

Investing during times of economic downturn is often challenging for the fearful investor. At the same time, others may look for opportunities. But now is not the time for greed. Now is the time for calculated decision making.

What a difference a year makes! We saw quite a turnaround story in 2019 compared with 2018. Despite escalating trade tensions between the United States and China, Brexit uncertainty, and a slowdown in the global economy, the year progressed in an unexpectedly pleasant fashion. In the second half of the year, global markets soaked up additional stimulus from global central banks and a first phase deal between the United States and China to extend the longest bull market in history. By the end of the year, every major asset class was materially positive.

Global equity markets had modest returns in the third quarter after a stellar first half of the year. Markets traded sideways due to 3 main factors--a slowing global economy, which affected company earnings, rising geopolitical tensions in the Middle East, and ongoing trade tensions between the United States and China, which affected global trade volumes.