Portfolio Manager Phil Taller talks about positioning the Mackenzie US Mid Cap Growth Class amid developments with the US economy, President Donald Trump and healthcare.
US equities performed well to start the year. The Russell Mid Cap TR index (CAD) returned 4.1% during the quarter. Notably, though, the market was led by Health Care and Technology – more of a growth-led market versus the value leadership that prevailed to end 2016.
US equities performed well. The Russell Mid Cap TR index returned 6.1% (CAD). The information technology and energy sectors were the biggest drivers of returns, with health care and industrials also contributing positively. Conversely, utilities, telecommunications and consumer staples sectors detracted from performance.
In general, markets offered mixed returns this quarter. The S&P 500 was up 1.8%, while in Europe the Euro Stoxx index was down 7.2%. In Asia the Nikkei was up 5.1% while Chinese markets declined.