Blog Layout
A Rough First Half
Jul 20, 2022
In his mid-year update, Wayne Gillespie provides his perspectives on a tough period for investors as high inflation continues to weigh on global markets.
“With uncertainty being high and sentiment being at the lowest it has been in over 20 years, there has never been a better time to have a plan in place and to execute on it with your Financial Advisor.”
Here are a few highlights:
- Canadian stocks have entered a “correction” while the S&P 500 is now in bear market territory.
- Bond markets have already priced in the remaining rate increases for 2022.
- Central Bank efforts to cool inflation have resulted in yields soaring causing the U.S. Treasury Yield Curve to invert
- We believe there is more monetary tightening to come than we thought three months ago
- We believe the next few quarters will be characterized by high inflation, slower growth, and market volatility.
- Investors are currently searching for a bottom, and typically, we see markets rally 12 months after inflation peaks.
After spending years on the sidelines of investor portfolios, high-interest savings accounts (HISAs) have surged in popularity.
Canada’s Federal Government released its new budget for the year ahead providing key details on important support programs. Our budget Infographic provides the key highlights.
The third week of February marked a crucial period for IPC Private Wealth clients, featuring up to four major portfolio events.
