The Living Market Podcast

Did you sell in May and go away?

Investors who stepped back from the markets over the summer have a lot of data to digest, says Chief Investment Strategist for IG Wealth Management, Philip Petursson. He gives an update on market activity for the last few months and discusses what is likely to happen during the remainder of 2022, including Canadian equities’ strong showing, healthy labour markets and opportunities in Europe and beyond.

Sometimes words speak as loud as actions.

Chief Investment Strategist for IG Wealth Management, Philip Petursson, says during a speech last Friday (August 26, 2022), U.S. Federal Reserve Chair, Jerome Powell reminded everyone that words are also a powerful policy tool: Philip says he thinks when the speech warned of “pain ahead,” that Powell knew exactly how markets would react. And the markets did react, with vigour. Listen in as Philp explores how, through the power of speech, Powell may have influenced markets just as effectively as if he hiked interest rates.

Deconstructing the Canadian dollar.

This week, Philip Petursson, Chief Investment Strategist for IG Wealth Management, deconstructs the Canadian dollar and examines where it should be, given its historical drivers (the global price of oil and Canadian-US interest rates). Listen in as Philip explains why he continues to believe the loonie is undervalued and is likely to rise as high as US$0.83 over the next six to 12 months.  

Have we turned the corner on the market?

Philip Petursson, Chief Investment Strategist for IG Wealth Management, says this summer has seen a nice equity market rally. At time of recording, he says the S&P 500 index has staged a healthy recovery off the low of June 16, 2022 by just over 17%. And while the index is still down year-to-date, we have seen a recovery over half of the downside since the start of the year. Listen in as Philip asks whether we have we turned corner on the market in economic pessimism and seen the bottom? And does this mean it’s all smooth sailing from here?

Emerging markets were seen as a big opportunity: what happened?

Back in 2001, emerging markets (particularly Brazil, Russia, India and China) were recognized as having all the ingredients to be attractive investment opportunities. But recently, emerging markets have underperformed. Philip Petursson, Chief Investment Strategist for IG Wealth Management, explores why this happened and whether China’s stimulus plans and low valuations can turn it around.

Is the Bank of Canada willing to risk a recession to tame inflation?

Philip Petursson, Chief Investment Strategist for IG Wealth Management, says monetary policy is not an exact science. It’s more like filling a bathtub with hot and cold water to try to reach the perfect temperature. The Bank of Canada’s recent 1% interest rate hike was more like dropping a block of ice into the bathtub. Listen in as Philip discusses whether weaker economic growth may be a side effect of the BoC’s determination to tame inflation.

Recession is on people’s minds – but will it happen?

Philip Petursson, Chief Investment Strategist for IG Wealth Management, says the online search for the word “recession” hit its highest level in 15 years during the week of June 12. Does this mean the U.S. economy is headed for a recession, or are people’s recession fears being stirred up by the media? Listen in as Philip investigates the data that would signal that a recession is imminent.

It’s time to talk about oil

Energy makes up 8% of Canadian GDP and has a big impact on the loonie’s value relative to the U.S. dollar. Host Philip Petursson, Chief Investment Strategist for IG Wealth Management, explores reasons why crude is so high (including high demand, war in Ukraine and capacity limitations), and how this will affect Canada’s energy sector, the S&P/TSX Composite Index and the loonie.

At the half-way point for 2022, where might we go from here?

Host Philip Petursson, Chief Investment Strategist for IG Wealth Management, says he’s not surprised about the evaluation correction, high inflation or the rising interest rate environment. He is, however, surprised by the magnitude of each and suspects that the majority of investors are equally surprised. Listen in as he discusses where we thought we’d be, where we are and where we’re going.

The rule of 20

Host Philip Petursson, Chief Investment Strategist for IG Wealth Management, explains the rule of 20, a way of measuring whether the stock market is over- or undervalued. Listen in as Philip explores how the rule of 20 relates to current market activity, how markets are still considered overvalued (in spite of recent corrections) and the role that inflation plays in all of this.