The Living Market Podcast

Consumers have had enough of high interest rates

Inflation dropped to 3.1% in October, but it would have been much lower if it weren’t for the rise in mortgage interest costs, says IG Wealth Management’s Chief Investment Strategist, Philip Petursson. He examines the impacts of higher mortgage payments on consumer behaviour and retail sales, and discusses the likely timing for the Bank of Canada to make a rate cut.

Current oil trends and their impact on the markets

There are three key reasons behind the recent fall in oil prices, says IG Wealth Management’s Chief Investment Strategist, Philip Petursson. Conflicts are not having the impact on prices that was expected, which has reduced the impact of speculators. Oil output is up, with stockpiles increasing, and demand (particularly from China) is down. Philip explains what this means for the economy in general and Canada in particular.

Do recent earnings point to recovery or recession?

This earnings season delivered some mixed messages, says IG’s Assistant Vice-President, Investment Strategy,  Ashish Utarid. While 82% of S&P 500 companies outperformed earnings projections, only 48% outperformed total sales expectations. Ashish dives into these apparently contradictory results to explain what they mean for manufacturing, consumer behaviour and a likely recovery.

Tips for investing in a volatile environment

IG Wealth Management’s Chief Investment Strategist, Philip Petursson says that while the current investing landscape is undoubtedly challenging, it’s important to remember that a weak economy does not automatically mean poor market returns. Philip shares his tips for investing in a volatile environment and reminds us that negative economic data has historically been followed by strong market returns.

Has the Fed lost control?

The U.S. Federal Reserve, or the Fed as it’s known, is once again caught between a rock and a hard place, says IG Wealth Management’s Chief Investment Strategist, Philip Petursson. On one hand, the Fed doesn’t want to hike interest rates and trigger a recession into 2024. On the other, it sure doesn’t want to slash them. Philip says markets are beginning to come to terms with this standoff.

What you need to know about risk

IG Wealth Management’s Assistant Vice-President, Investment Strategy, Ashish Utarid says, when we delve into investment risks, it’s essential to discern between two primary types: systemic and non-systemic risk. He says investment strategy takes empirical data from around the world, and by interpreting these indicators, his team provides insights for an investment decision or thesis. He says what has changed in the last decade is the impact of mass media on investor sentiment — which requires insights into geopolitical risk.

Even when you get it right, you can get it wrong

It can be impossible to truly predict the markets, even when you think you have all the data at your fingertips, says IG Wealth Management’s Chief Investment Strategist, Philip Petursson. Philip explains what happened when Jane Street, a quantitative trading firm, managed to predict Donald Trump’s election victory in 2016 and used that information to bet on the overnight futures market.

Are we heading for a soft landing or stagflation?

This week, IG Wealth Management’s Assistant Vice-President, Investment Strategy Ashish Utarid explains how the markets are reacting to long-term bond yields outpacing short-term yields. While this situation often foreshadows a recession (as do higher-for-longer interest rates), other economic data — such as the strong labour market, tamed inflation and improving manufacturing — suggest a soft landing.   

What’s causing market volatility — and will it last?

September is usually the worst month of the year for equity markets, says IG Wealth Management’s Chief Investment Strategist, Philip Petursson. However, there’s much more to current stock market volatility than seasonal precedent. Philip explains the reasons behind volatility, including the role that high bond yields play in reducing stock value. He also suggests the kind of stocks to focus on in this high-interest-rate environment.   

Oil: the pickpocket of the global economy

IG Wealth Management’s Chief Investment Strategist, Philip Petursson describes rising oil prices as being like a tax on global consumers. He explores the reasons behind oil’s recent jumps in price, how those increases are likely to affect consumer spending and whether this most recent oil shock is likely to bring about a recession, as has happened in the past.