In Q1, equities posted impressive returns with U.S., Canadian, and global equities seeing consistent gains backed by strong corporate earnings, AI excitement, and the optimism that the Fed and BoC rate cuts are getting closer. While U.S. job creation continues, there are signs of a slowing labour market, particularly in Canada, and inflation has been stickier in the U.S. than the market likes.

In this Video Quarterly Report, Matthew dives into Benchmarking and he also provides an economic update – with a discussion around CPI, inflation, and Canadian household savings.

The start and end of 2023 presented starkly different scenarios for investors. The year began with trepidation following a tumultuous 2022 but concluded on a high note as inflation slowed and equities yielded substantial returns.

Equities in the U.S., Canada, and globally began the quarter on a positive note but faded in August and September, resulting in negative returns. However, year-to-date, equity markets remain in positive territory. Bond markets saw U.S. and Canadian yields rise due to credit rating downgrades and inflation concerns. Both presenting cheap buying opportunities for the long-term investor.

After battling Covid19, the world today is faced with a new type of threat - an all-out inflation pandemic! Every day, we hear news of prices soaring for even basic commodities, such as food and clothing, and many families struggling to make ends meet. Almost everything today is more expensive than it once was and that is due in part to inflation.

Q2 was another strong quarter for investors with positive equity market returns and stable bond yields. The U.S., Canadian, and global equities closed the quarter and first half of 2023 positively, with technology being the leading sector.

Investors had lots to cheer by the end of Q1 as stocks rallied, bond yields fell, central bank hiking slowed and inflation cooled again. It’s a promising start to 2023 but there were a few shocks along the way.

Investors experienced a turbulent ride in 2022. Inflation, central bank rate hikes, oil prices, supply chain disruptions and the Russia-Ukraine conflict cast a long shadow on markets, causing extreme volatility and dominating financial headlines 24/7.

Despite a bright start to Q3, U.S., Canadian and global equities gradually lost momentum as the Fed reiterated it would continue its monetary tightening path. In bond markets, U.S. and Canadian yields rose on the outlook for interest rates, inflation and the pound falling to a record low after the U.K. government announced huge tax cuts funded by increased borrowing which were subsequently rejected by the market and reversed.

It was an eventful quarter. Lingering inflation, tightening central bank policy, high oil prices and geopolitical tensions were top of mind for investors. U.S., Canadian and global equities swung back and forth on market volatility, one moment bullishly coping and the next turning bearish, before ending Q2 in the doldrums.

We wanted to take a moment to share a special market and economic summary by our in-house CFA Charterholders, Matthew Jenkinson and Cy Korun, addressing the current market volatility and economic uncertainty.

The start to 2022 has been a volatile one. High inflation, rising interest rates and commodity prices, and geopolitical tensions with war are weighing on global economies, supply chains and consumers.

U.S, Canadian and global equity markets started Q3 where Q2 ended, confidently charting a course forward. By the end of August, equities had notched a seventh straight month of gains, with the S&P 500 Index finishing near its all-time high and the TSX Composite Index on its longest winning streak in four years.

The global economy continued to recover in the second quarter helped by the rollout of COVID-19 vaccines, U.S. fiscal stimulus programs and supportive monetary policies from the Fed and other major central banks.

Markets in the first quarter of 2021 have been marked by ongoing volatility as the world recovers from the negative effect of the first waves of the COVID-19 pandemic.

Despite a resurgence of COVID-19 cases and renewed lockdowns in many regions, markets trended upward during the fourth quarter of 2020, boosted by growing clarity around the outcome of the U.S. presidential election and significant COVID-19 vaccine progress.