Our latest insight looks at when stocks and bonds correlate negatively and positively, why they move the way they do, and what that could mean for market watchers.
Our latest insight looks at when stocks and bonds correlate negatively and positively, why they move the way they do, and what that could mean for market watchers.
MFS Investment Management is the sub-advisor to the Sun Life MFS mutual funds
In a recently published article ‘Looking Ahead to 2023: End and Beginning of an Earnings Cycle’ that was first published in the United States by MFS Investment Management, Robert M. Almeida Jr., Portfolio Manager and Global Investment Strategist, discusses his outlook on inflation, recession risks and earnings expectations for the rest of 2023. Here’s a summary of our takeaways.
Strong regulation, supervision and a conservative risk culture characterize Canada’s concentrated banking industry. This has reinforced the message that Canadian banks are safe following recent bank runs in the U.S.
Markets rollercoaster through a volatile first quarter after interest rates expectations fluctuate.
Federal budget 2023 includes green tax credits, measures to make it easier to use RESPs and RDSPs, and benefits to help lower income Canadians fight inflation.
Canadian markets turned volatile recently due to bank runs in the U.S. Despite the market turmoil, we encourage Canadian investors to stay invested. While bank runs may have limited direct impact on Canadian economy, the U.S. Federal Reserve’s interest rate decision could dictate the tone for Canada.
At times, investors tend to underestimate risks that seem unlikely to happen. But potentially high impact risks that have a low probability of occurring are important to consider while building and managing portfolios. Here is a list of such risks that markets could encounter in the short to medium term.
2023 has just begun, but so far inflation and interest rates continue to dominate business headlines. Central banks around the world are deliberating what to do next after relentlessly raising interest rates to fight off the highest inflation we’ve seen in the last 30 years. Rate hikes have affected all asset classes and left investors with few places to hide. Inflation, although likely passed its peak, remains elevated and it could be a while until it’s under control.
Rapid interest rate hikes reset valuations for major asset classes in 2022. We expect the focus to turn to concerns about growth and earnings slowing down in 2023.
Diversifying to reduce risk is a key investment strategy. The reason: not all investments will perform in the same way at the same time.
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Advisors, please contact your Sun Life Global Investments Wealth Sales Team for fund commentary.