The Living Market Podcast

Last week, Silicon Valley Bank collapsed, which led to some volatility in the markets. IG Wealth Management’s Chief Investment Strategist, Philip Petursson explains what caused the bank’s failure, how the U.S. Federal Reserve reacted, and why this is NOT like the Great Financial Crisis.

The Bank of Canada’s governor, Tiff Macklem, has a tough decision to make, says IG Wealth Management’s Chief Investment Strategist, Philip Petursson. Keep rates stable and he’ll risk higher inflation; hike rates in line with the U.S. and he could slow down the economy even more.

It’s important to realize that some financial commentators use extreme language to get your attention; their views often lack evidence to back them up. IG Wealth Management’s Chief Investment Strategist, Philip Petursson, says it doesn’t matter what they think, it only matters what they can prove.

The labour markets in both the U.S. and Canada are proving to be much more resilient than expected. Nevertheless, IG Wealth Management’s Chief Investment Strategist, Philip Petursson believes that we could have both a strong job market and a recession, albeit one with a soft landing.

Investors often fall into two categories; pessimists and optimists, says IG Wealth Management’s Chief Investment Strategist, Philip Petursson. He believes that the optimists are in part driving the recent equity market rally, in the belief that interest rate cuts will happen later this year. The realist’s view is a little different, but bodes well for both pessimists and optimists.

People often ask the question: “Is now a good time to invest in the stock market?” IG Wealth Management’s Chief Investment Strategist, Philip Petursson, discusses the odds involved in successfully timing the market. He also explores the surprisingly small benefits of investing at the “right” time and why the best time could simply be when you have the money.

Both the S&P 500 (+6.2%) and the S&P/TSX (+7.1%) had a surprisingly strong first month of the year. IG Wealth Management’s Chief Investment Strategist, Philip Petursson, wonders if the “January barometer” and other favourable economic factors mean that equities will have an even better year than his team’s most optimistic predictions.

The Canadian dollar’s value compared to the U.S dollar is quite cyclical, but there are a couple of reasons why it can rise or fall in the short run, says IG Wealth Management’s Chief Investment Strategist, Philip Petursson. This week, he explains how the price of oil and the difference in Canadian and U.S. interest rates are likely to keep the loonie lower than was anticipated six months ago.

European stocks have long lagged behind US equities. However, IG Wealth Management’s Chief Investment Strategist, Philip Petursson, suggests that there are five compelling reasons to consider them, including much better valuations, strengthening currency, China reopening, falling inflation and growing confidence.

What kind of recovery can we expect the markets to make in 2023? On the Living Market this week, IG Wealth Management’s Chief Investment Strategist, Philip Petursson, considers several factors — continued conflict, rate hikes, inflation, earnings announcements — to answer that question. He says one thing markets hate is uncertainty, and there’s little of that left.