Investor Site

 

Renaissance Investments™

CIBC Asset Management Perspectives-Cushioning the downturn



As the trade war intensifies and economic growth disappoints, global interest rates continue to move lower—there are 19 bond markets with a 10—year government bond yield below 1%. With very little policy leeway left, monetary authorities now have to rely on fiscal policy-makers, who need to take on a bigger role to support global growth.

Asset class highlights

Equity: Although Canada doesn’t face the trade war and political uncertainty that other markets do, the global slowdown will limit the upside for cyclical Canadian equities.

Fixed Income: While bond yields in developed markets may have already seen a bottom, they are unlikely to march meaningfully higher in the short term.

Currencies: For other currencies to move decisively higher against the U.S. dollar, monetary authorities in the rest of the developed world have to take a more hawkish turn. This is not likely to happen anytime soon.

Commodities: The quick return to lower oil prices after the drone attack on Saudi oilfields highlights a situation where market supply will outstrip demand as we move into 2020.

Read Perspectives Report

Perspectives Executive Summary

Perspectives Video Commentary with Luc de la Durantaye

Protecting Portfolios as Global Risks Mount podcast with Luc de la Durantaye