The Living Market Podcast

The Bank of Canada’s economy conundrum

The Bank of Canada’s goal of lowering inflation is having a noticeable impact on the economy, says IG Wealth Management’s Assistant Vice-President, Investment Strategy, Ashish Utarid. Higher interest rates have increased mortgage costs by as much as 30%, which in turn are contributing to current inflation levels. Ashish explains how this has all led to reduced consumer spending and an economy that’s been practically stagnant for the past four months.

What’s better: the best manager or the best asset class?

IG Wealth Management’s Chief Investment Strategist, Philip Petursson says that common sense might have you believe that your portfolio needs the best asset managers in the best asset class. However, historically, top performing asset managers rarely maintain their high position from one year to the next. In that case, how can you make sure your portfolio has a steady, dependable performance?

How do you build a portfolio to withstand ever-changing conditions?

IG Wealth Management’s Chief Investment Strategist, Philip Petursson says the aim of an investment portfolio is to maximize the return for every risk taken. He says the inherent challenge is that both risk and return are variables that fluctuate. This week he looks at the complexities that investors face and considers what the optimal strategy might be in such an ever-changing investment landscape.

Beyond fearmongering: what history tells us

IG Wealth Management’s Chief Investment Strategist, Philip Petursson says there’s no shortage of market doomsayers , but the attention they garner doesn’t necessarily mean their predictions are accurate. This week Philip looks at the historical data for periods like the present – with slowing growth and falling inflation – and draws a very different conclusion than the pessimists.

A look at second quarter earnings

IG Wealth Management’s Chief Investment Strategist, Philip Petursson says throughout financial quarters, companies set earning estimates and then progressively lower them until the final figures beat the expectations. And then everyone cheers. Philip says the 2023 Q2 earnings season followed the same script, but with a twist — expectations were even more subdued. This week he looks how companies performed. 

Can we put inflation in the rear-view mirror?

Forecasting is a tricky business, says IG Wealth Management’s Chief Investment Strategist, Philip Petursson. However, recent data suggests that high inflation is behind us (at least in Canada and the U.S.) and that the Fed and Bank of Canada are done with rate increases for now. However, while Philip doesn’t forecast a full-blown recession, he believes the latest data from China means that we can’t let our guard down just yet.

After the NASDAQ’s big rally, what’s next?

After the NASDAQ’s phenomenal recent performance — up 40% from its low in 2022 — IG Wealth Management’s Chief Investment Strategist, Philip Petursson says, great; now what next? With the NASDAQ trading at 50 times its earnings (the historical average for U.S. stocks is 16 times earnings), Philip examines sectors and regions that are still comparatively undervalued, and which could present opportunities for investors willing to go against the grain, such as international, Canadian and emerging market equities.

Why you shouldn’t ignore China

IG Wealth Management’s Assistant Vice-President of Investment Strategy, Ashish Utarid explores China’s meteoric economic rise. Since 2001, when the country joined the World Trade Organization, with exports of around US$200 billion, China has grown to the point where it had exports of US$3.6 trillion in 2022. Ashish believes that, given China’s commitment to ongoing economic growth, and its huge industrialization and urbanization, every investor should consider exposure to Chinese assets.

The Weightful Eight are losing weight

The NASDAQ has dominated the market in the first half of the year, with an increase of 38% so far, driven by the surge in the tech industry, says IG Wealth Management’s Chief Investment Strategist, Philip Petursson. However, the Weightful Eight (the top tech companies) have recently been losing ground, meaning there could be more diverse opportunities in the latter half of the year, which could be good news for more diversified portfolios.

The upside to higher interest rates: bond performance

An inverted yield curve is an infamous predictor of recession, says IG Wealth Management’s Chief Investment Strategist, Philip Petursson. But it can also signal opportunity. Whether the economy experiences a soft landing, hard landing — or even no landing, fixed income is positioned to deliver favourable returns for investors.