The Living Market Podcast

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.

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.