Global equity valuations are above their 20-year averages. Daniel Arsenault, Investment Director with the Mackenzie Ivy Team discusses these valuations and what they means for investors.
September 12, 2017
Global equity valuations are higher than their 20-year averages so investors can position portfolios for a potential correction.
Capital preservation is key for investors who draw regular income from their investments. Learn how the Mackenzie Ivy Canadian Balanced Fund/Class is uniquely positioned to protect on the downside.
Balanced funds can anchor a portfolio by diversifying across equities, bonds and cash for consistent performance and risk management. Learn how balance can strengthen your portfolio’s core.
Capital preservation is key for investors who draw regular income from their investments. Learn how the Mackenzie Ivy Global Balanced Fund/Class are uniquely positioned to protect on the downside.
A resource for both advisors and investors, the Ivy Quarterly gives perspective on the portfolios, investment philosophy and holdings in a comprehensive format. The Ivy Team discusses world markets and where they are finding value today.
September 30, 2017 Bookmark the Web Page, Ivy Quarterly Review Add to My Bookmarks
Over the third quarter of 2017, global economic growth was positive over the period as a range of indicators suggested that expansion is under way in most developed nations. Despite geopolitical tensions with respect to North Korea, global equity markets rose in response to increasing corporate earnings, while Canadian equity markets were up only modestly. Given improved growth and lower deflation risks, the European Central Bank hinted that it may tighten its accommodative monetary policy by further reducing asset purchases.
Over the first quarter of 2017, the global market finished strong, continuing the trend that started last fall. Far East markets outperformed the US and European markets; this is the opposite of what was observed in Q4, when Far East markets lagged their global counterparts. European markets also posted strong performance. US markets achieved new all-time highs. The U.S. Federal Reserve raised the federal funds rate again in March 2017, after the hike in December 2016, citing higher home prices, low unemployment rate and improving economic confidence.
The fourth quarter was an interesting end to an eventful year in U.S. equity markets. A strong finish after a weak start. Total corporate earnings were roughly flat year over year as local currency growth for global corporations was offset by currency and energy and commodity exposed companies across many different sectors saw earnings deteriorate while domestic companies without commodity exposure experienced steady growth.