Actionable Investment Opportunities
Investment opportunities include adding duration to fixed-income holdings and exploring private equity and credit strategies. Our report highlights the potential for bond price appreciation and attractive returns from private credit, providing guidance on optimizing portfolio allocations in the curr
Alternatives & Private Investments
Hedge funds saw gains in Q3, led by long-short equity and convertible arbitrage, while commercial real estate struggled with declining values for six straight quarters, despite some stabilization signs. Private equity deal activity rebounded sharply, though exit volumes lagged behind peak years. Ven
Fixed Income Markets
U.S. government and investment-grade corporate bonds saw significant appreciation in Q3, as interest rates declined. The Barclays US Aggregate Index rose 5.2% for the quarter, leading to a 3.0% YTD gain. U.S. Treasury yields dropped by 60 basis points (10-year) and 110 basis points (2-year) in Q3, r
Equity Markets
Global equities, as measured by the ACWI Index, advanced 6.6% in Q3, bringing YTD gains to 18.8% through October 11. Gains were broad-based, with emerging markets (+8.7%) and international developed equities (+7.3%) outperforming U.S. stocks (+5.8%). Emerging markets were notably boosted by a sharp
Shorter-term View
Our report revisits vital issues outlined in previous updates, including moderating inflation, slowing economic growth, and AI’s role in market performance. We also address China’s economic outlook, evolving geopolitical risks, and the potential impacts of the upcoming U.S. presidential election
Macroeconomic Conditions
Global economic conditions indicate a resilient U.S. economy, though signs of a slowdown are emerging. Canada’s growth has been modest but slightly above expectations, with projections of 1.2% for 2024 and 2.0% for 2025. Europe’s economy remains sluggish, with minimal growth, while China continu
Strategic Asset Allocation View (7-years)
Our 7-year forecasts consider several factors shaping the mid-term investment landscape, including mid-single-digit equity returns (6.0%-7.0%) and a gradual decline in interest rates. U.S. equities may see narrowing outperformance over international markets, while corporate profit margins face mixed
Capital Markets Executive Summary
Global equity markets advanced 6.6% in Q3, bringing YTD gains to 18.8% through early October, with emerging markets leading the way. Fixed income appreciated as interest rates fell, and alternative assets like hedge funds, private equity, and private credit posted positive returns. Our report explor
