In Q2, the market extended its year-to-date run, reaching new highs after fully recovering from the fleeting sell-off experienced in Q4. What we find worrying about this recovery is that it has occurred while GDP growth expectations have been slowing, which suggests that the market is more captivated by the prospects of increasingly accommodative monetary policy.
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.
Markets were up significantly in the first quarter, effectively reversing the losses incurred in Q4. Although the past six months have almost been a wash from a market perspective, high levels of volatility tend to negatively impact individual investors, whom are often whipsawed in and out of the market at precisely the wrong times.
US markets had a very strong Q4 and year in 2018. The market appears to have evolved from one being stubbornly pushed higher by unrelenting Central Bank efforts to one that is self-sustaining and accelerating in its upward momentum.
Global equity markets continued its positive trend in the third quarter in 2018. U.S. market was strong which continued to be driven by the Information Technology sector. Both European and Asian markets were modestly higher in the quarter, but the gains were muted when measured in Canadian dollar terms. Canadian market lagged the global markets, with the S&P/TSX Composite Index returned slightly negative during the period.