On April 23, France held the first round of its Presidential Election. Todd Mattina, Chief Economist and Strategist on the Mackenzie Asset Allocation Team, discusses the first round results and the immediate impact on global markets.
Mackenzie Chief Economist Todd Mattina analyzes the key factors in play ahead of the U.S. central bank’s last interest rate announcement in 2016.
Mackenzie Chief Economist Todd Mattina analyzes issues and implications of the results of Italy’s constitutional referendum.
Darren McKiernan, Head of the Mackenzie Global Equity & Income Team, says Donald Trump’s victory has set a path for inflation and interest rates.
Benoit Gervais of the Mackenzie Resource Team says several parts of Donald Trump’s election platform could affect the Resources sector.
Phil Taller of the Mackenzie Growth Team says investors have to deal with uncertainty and volatility until they see Donald Trump’s policy agenda
Rick Weed of the Mackenzie Systematic Strategies Team examines how Trump policy could affect certain sectors of the investment markets.
Hovig Moushian, Head of the Mackenzie All Cap Value Team, says increased volatility after the U.S. election is already creating market opportunities
Dina DeGeer and David Arpin of the Mackenzie Canadian Growth Team say Donald Trump’s focus on global trade could bode ill for global economic growth.
Richard Wong and Jonathan Norwood of the Mackenzie Cundill Team say some sectors would benefit from an expected regulatory shift under Donald Trump.
Erik Becker and Gus Zinn of Waddell & Reed Financial say investors may underestimate how companies can adapt to new economic policy conditions.
Irish Life Chief Economist Lenny McLoughlin examines fiscal and monetary policy considerations of a Donald Trump presidency.
Chief Economist Todd Mattina analyzes the U.S. election results from macro and market angles.
Paul Musson, Head of the Mackenzie Ivy Team, explains his portfolio-management focus in the final days before Americans go to the polls.
Investors are dealing with a rapid and dramatic increase in uncertainty now that the UK plans to exit the European Union (EU). In the two trading days immediately following the Brexit vote on June 23, volatility rose sharply and UK stocks contracted 7% while European stocks retreated more than 10%, both in local currency terms. In Canadian dollar terms, the losses were more severe at 15% and 11%, respectively.
The outcome of the UK referendum is expected to result in a significant slowdown in UK economic growth with a possible recession over the next year as consumption and investment activity are likely to be reduced. In particular, London’s financial industry could be negatively impacted by the lack of access to European markets after the UK exits.
Brexit dominates financial markets at the moment and many portfolios were wrongly positioned for that referendum outcome. The greatest danger now is overreaction. Commentators focus on negatives around Brexit but ignore the potential positives.
Markets reacted very negatively after UK citizens voted to exit the EU in a referendum on June 23. This is validation for the Ivy process which focuses less on macro outcomes and more on corporate culture, strong balance sheets, defensible market positions and justifiable expected returns given the risk.
While none of us liked to see that much red on our screens first thing in the morning on June 24, the Mackenzie Global Dividend Fund acted as it should have on the day after the Brexit vote. As of Friday morning the stocks we owned in aggregate had outperformed their respective benchmarks across every geography – from Europe and the UK, to Japan to the U.S.
In situations like Brexit, we believe that markets tend to overreact in the short term. When markets behave this way, it provides value investors like us with opportunities to make investments if the risk/reward is appropriate within the portfolio.
In general, our operating assumption has been that economic growth will remain modest at best, and the Brexit event does nothing to change that view.
The UK’s unexpected vote to exit the European Union sent a shock throughout global markets. As per normal when markets receive a shock, investors initially retreat to perceived safe havens, with U.S. bonds, the U.S. dollar and gold rallying sharply.
A flight to quality in the immediate aftermath of the UK’s Brexit vote led yields in safe haven countries lower, and the yield curves in most G7 countries to flatten in the 2Y-10Y part of the curve. U.S. Federal Reserve rate hikes in 2016 have been priced out of the market, and there is even some small probability of an ease by the end of the year priced in to the yield curve.
In a decision that took markets by surprise, the UK voted to leave the European Union (EU) in its June 23rd referendum. The ‘Brexit’ decision heightens uncertainty about trade, regulatory and immigration rules, which will weigh on investment and economic growth.
Todd Mattina, Mackenzie’s Chief Economist and Strategist, analyzes what investors need to know ahead of the UK referendum on its membership in the European Union.