The Bank of Canada’s latest review of business and consumer expectations has revealed how widespread uncertainty is muting rehiring and purchasing plans, published days before a federal update gives the Liberals’ outlook for the economy. The central bank’s business outlook survey suggested about half of firms foresee a rebound in their sales within the next […]
Along with the rest of the globe, Canada isn’t likely to see the V-shaped recovery that institutional investors were hoping for as it stares down the recessionary road ahead. “Canadian activity was also on the softening path even at the end of last year,” says Irene Lauro, an economist at Schroders. “And this is because […]
With some jurisdictions gently reducing coronavirus-imposed restrictions, institutional investors are beginning to lay out possible scenarios for economic recovery. The terms V- and U-shaped recovery, along with arguments over which is more likely, have swirled throughout the past few months as economies around the world shut down huge swathes of their normal activities. Alessio de Longis, […]
The investment industry has been talking a lot about our position in the economic cycle and our proximity to a recession. In fact, I wrote about it last year with respect to interest rates and the economy. The current situation remains somewhat tenuous, with ever-present geopolitical tensions, rising populism (and hence protectionism), slowing global economic growth, monetary […]
The current market environment continues to push institutional investors into alternative assets, seeking both yield and diversification, but not all options are created equal. Hedge funds, according to JP Morgan’s alternative asset outlook, will gain further traction as new technologies capture investor attention in 2020. “As tech spending continues across industries, our managers anticipate opportunities as […]
Institutional investors have been going back and forth about whether monetary policy will provide the tailwinds to markets it did last year or whether central banks are running out of steam. Monetary policy decisions by the U.S. Federal Reserve, the European Central Bank and other developed market players did plenty to bolster markets in early 2019, […]
The days of monetary policy as the most effective tool for stimulating the economy are over, as central banks around the world are increasingly limited in the measures they can implement, according to AllianceBernstein’s chief global economist. “The ability for central banks to do more is constrained, particularly in . . . Europe and Japan,” where banks have set incredibly […]
Heading into 2020, institutional investors are eyeing the disconnect between gloomy macroeconomic indicators and strong equity market performance. Leading indications in both North American and European economies have been trending down all year, with global gross domestic product growth forecasts in a slump, said Alec Young, managing director of global markets research at FTSE Russell, during a […]
While a recession may not be likely, institutional investors can expect dampened performance in many capital markets heading into 2020, according to Bill Yun, executive vice-president at Franklin Templeton’s multi-asset solutions business, at an event in Toronto on Tuesday. Forward-looking expectations for capital markets from Canadian government bonds to emerging market equities are all in […]
When central banks took on the challenge of saving a drowning global economy during the 2008 financial crisis, pension plans appeared to have plenty to be thankful for. However, as the U.S. Federal Reserve and the European Central Bank embark on their latest round of monetary stimulus, these policy changes mean pension plans are now […]