Actionable Investment Opportunities
Leverage a barbell strategy for short-term US and Canadian government debt, focusing on shorter maturities and 10-year US Treasuries. Private Credit offers strong returns with senior direct lending and increased demand for flexible junior capital. Asset-backed credit solutions see a rise as high-qua
Alternatives & Private Investments
HFRX Hedge Fund Index rose 0.5% in Q3, totaling 1.3% YTD. Convertible arbitrage strategies led, while office real estate faced challenges with increased defaults. Private equity shows positive YTD performance, but PE buyout values and exit activity are down. Venture capital remains stable, but down-
Fixed Income Markets
Q3 saw fixed income dynamics shift as interest rates rose, impacting US Treasuries. High yield bonds and leveraged loans shine this year, with particularly risky HY bonds standing out. Current yields vary, with investment-grade corporate bonds at 6.0%. But as spreads tighten and credit stress emerge
Equity Markets
In Q3, global equities fell 3.4% but surged 11.2% YTD. Value stocks outpaced growth this quarter, but tech-heavy growth dominates YTD. The S&P 500 dropped 3.4% in Q3 but climbed 14.5% YTD due to major tech firms. International equities, especially in Europe and China, struggled. US corporate earning
Shorter-term View
US equities soared in 2023, but what's next? From potential Fed rate cuts to inflation worries, three key scenarios could shape the market's fate. Will we see the S&P 500 hit 5,300 or face a 20% plunge?
Macroeconomic Conditions
The US economy shines amidst global challenges, but 2024 might tell a different story. Canada shows signs of strain, Europe flirts with recession, and China's consumer boom contrasts its property woes. Inflation concerns persist globally. How will central banks react?
Strategic Asset Allocation View (7-years)
In our 7-year forecast, declining interest rates, labor shortages, and rising energy prices stand out. Geopolitical tensions, especially between the US and China, loom large. While equities might return 6.5%-8.0% annually over the multi-year period, "Safe" fixed income, especially US 10-Year Treasur
Capital Markets Executive Summary
In Q3, equities dipped 3.4% but are up 11.2% YTD. Rising bond yields impacted US stocks, while international equities felt pressure from Europe and China. Bonds faced challenges, but high-yield assets remained resilient. Hedge funds saw modest growth, while private equity hinted at promising gains.
