The Living Market Podcast

Shipping costs, rebellion and the markets

The Red Sea is a crucial artery for around 15% of global maritime trade, says Ashish Utarid, Assistant Vice-President, Investment Strategy at IG Wealth Management. He says the attacks by the Houthi movement on commercial and navigational ships has already detoured 2,000 vessels and led to significant shipping delays. He examines whether this is a bump in the road or if it could have a lasting impact on the markets.

Labour trends and what they mean to the markets

December’s big increase in U.S. jobs initially brought about a negative reaction from the markets, says IG Wealth Management’s Chief Investment Strategist, Philip Petursson. After all, a hot jobs report means a strong economy and therefore less pressure on the U.S. Federal Reserve to cut interest rates. However, once details emerged beyond the headline numbers (meaning weaker data than initially thought), the markets responded positively. Philip explains that, when it comes to jobs data and the markets, the devil is in the details.

Is the market getting ahead of itself?

We ended 2023 with plenty to encourage investors, says Ashish Utarid, Assistant Vice-President, Investment Strategy at IG Wealth Management: a robust U.S. consumer, inflation under control and a pause in interest rate hikes (with expectations for rate cuts in the new year). This optimism brought about strong gains for equities and bonds at the end of last year. However, Ashish warns, we may see some volatility in early 2024, given that much of those price increases were due to what was expected to happen in the new year, rather than what had already happened.

Forget the skeptics: Santa is bringing an improving economy for 2024

Despite some skeptics still predicting a recession in the U.S., IG Wealth Management’s Assistant Vice-President, Investment Strategy, Ashish Utarid believes that we’re in for a soft landing. He outlines the reasons why he’s confident that the new year will bring rewards for investors, including key economic indicators, such as manufacturing, exports, housing and earnings all heading in the right direction, and recent central bank statements pointing towards interest rate cuts in 2024.

The Forgotten 493 ride again

In recent weeks, the forgotten 493 (the S&P 500 companies that aren’t the seven big tech companies) have jumped by almost 5%, while the Magnificent Seven have remained flat. IG Wealth Management’s Chief Investment Strategist, Philip Petursson analyzes the market conditions that have helped the S&P 500’s less well-known companies perform so well and explains why he’s optimistic that this performance will continue into 2024.

Strategies for minimizing tax before the year-end

In this special edition of the Living Market, IG Wealth Management’s Chief Investment Strategist, Philip Petursson discusses ways to minimize taxes before the year-end with Aurèle Courcelles, Assistant Vice-President, Tax and Estate Planning at IG. Aurèle outlines tax-loss selling, tax-efficient charitable giving, and the most tax-efficient ways to withdraw from an RESP and a TFSA. He also explains how tax planning needs to be a part of your overall financial plan for maximum tax efficiency.

What can we expect from 2024?

As we look towards the new year, IG Wealth Management’s Chief Investment Strategist, Philip Petursson looks at the six key themes that he feels will have big impacts on the markets in 2024. Considering all the factors, he believes the data points to a general sense of improvement. And improvement, he says, brings opportunity.

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.