Mackenzie Investments publishes regular commentaries to help advisors and investors make sense of the markets, review the recent performances of funds and anticipate future outlooks. Read Mackenzie Investments’ quarterly, monthly and team commentaries for more information.
Latest Quarterly Commentary
Global inflation, particularly in developed countries, has been low for an extended period of time despite massive and extraordinary central bank intervention. Since inflation is both one of the most important factors in determining asset values (stocks, bonds, real estate) and an important factor in how certain industries perform, it is an economic variable that we pay attention to.
What was a generally positive quarter for bonds, with 10-year yields drifting modestly lower in developed markets, turned on a dime during the last two weeks of June. A second 0.25% increase by the Fed, which was expected, combined with slightly more hawkish statements by several central banks to catch the market off-guard and produce the sharp sell-off.
Over the second quarter of 2017, the global market finished positively. European markets were roughly flat in the quarter in local currency terms, but Canadian investors benefited from a rising euro. Much like previous quarter, the Far East equity markets continue the strong performance. U.S. equity markets continue their upward climb driven largely by continued valuation expansion.