Blog Layout
The Outlook Remains Uncertain
Wayne Gillespie • Jan 27, 2023
In his Q4 update, Wayne Gillespie offers his perspectives on a tough year in the markets and why he is optimistic about a recovery in 2023.
“Economic shocks are still rippling through global economies, meaning that any forecasts for 2023 are going to remain uncertain.”
Here are a few highlights:
- The most aggressive monetary tightening cycle in decades shook global markets in 2022 on concerns that central bank efforts to rein in inflation will cause a recession.
- He sees three factors that continue to weigh on the markets: Continued rate increases, a slowing global economy, and elevated stock valuations.
- A strengthening of core bond holdings has occurred. After a period where bonds failed to provide meaningful diversification, a modest increase in duration through higher-quality investment grade issues and a reduced exposure to high-yield debt appear justified.
- Economic shocks are still rippling through the global economy meaning any forecasts for 2023 remains uncertain.
- Accordingly, we are maintaining an underweight position in equities and overweight fixed income. We are lowering our short-term bond exposure to add duration.
- We expect an opportunity to increase equity exposure within the next 6-8 months.
- The recent deceleration in interest rate increases suggests there's now light at the end of the tunnel in 2023
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.
