MARKET COMMENTARY

A Bumpy Ride to the Finish Line

The worldwide Q4 market correction created discomfort for investors and unlocked opportunities well-suited to our active management approach. Take a closer look.

01.29.2019 - Ian Riach, Chief Investment Officer

A Bumpy Ride to the Finish Line

By Ian M. Riach Equities worldwide experienced meaningful declines in the last quarter of 2018.1 All major developed market indices fell by at least 10% (in local currency terms). Measured against the cyclical peaks reached a few months earlier, equity declines were even more significant and technically signalled a “market correction.”2 Concerns about trade relations with China, tightening US financial conditions and eurozone issues—including Brexit, Italy’s budget deficit and “Yellow Vest” protests in France—combined to undermine investor confidence. In the face of this environment, bond prices rallied, sending yields down. The Government of Canada 10-year bond yield dropped from over 2.6% in October to under 2% at the quarter’s end and the 10-year US Treasury yield fell to approximately 2.7% after rising above 3.2% during the period.

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MARKET COMMENTARY

A Closer Look at Europe

01.29.2019

See their specialized views on the region’s distinct character and ways to capture potential upside performance in 2019.

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MARKET COMMENTARY

Performing in a Difficult Market

01.29.2019 Scott Guitard, Vice President, Portfolio Manager

See how our ongoing conservative bias, diversification and international weighting added value to portfolios in the challenging fourth quarter.

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