CIBC Asset Management Perspectives - In a wait-and-see mode
Risk assets fell off a cliff late last year, only to stage their strongest comeback in more than a decade over the first quarter. The economic slowdown and market turmoil of 2018 were triggered by monetary policy normalization and concerns around trade wars and geopolitics. While these headwinds are dissipating, they haven’t completely disappeared.
Asset class highlights
Fixed Income vs. Equity
: Our strategy favours a small tilt toward equities; however, with their downside risk and the scarcity of attractive defensive assets to balance portfolios, our approach is conservative.
: While equity markets may struggle in the short term to find a catalyst, we should see positive but unspectacular returns in 2019.
: Global economic data is unlikely to consistently surpass expectations—this could cap the upside for yields at 2.60% (U.S.) and 1.85% (Canada) for 10-year sovereign bonds.
: The Canadian dollar remains more fundamentally challenged than most developed market currencies.
Read Perspectives Report
Perspectives Executive Summary
Perspectives Video Commentary
with Luc de la Durantaye
Which Equity Markets Offer Value
podcast with Luc de la Durantaye