Valuations

Highlights Corporate Bonds: High corporate debt levels will be a problem for corporate bond investors during the next downturn, but spreads will not respond to them until inflationary pressures mount and monetary policy turns restrictive. Maintain an…

Investors should pay particular attention to definition and methodology when evaluating value versus growth strategies, both academically and in practice. Value investors should focus on non-U.S. markets, especially the emerging market small-cap universe…

Highlights Investors should pay particular attention to definition and methodology when evaluating value versus growth strategies, both academically and in practice. Value investors should focus on non-U.S. markets, especially the emerging market small-…

Highlights Portfolio Strategy The contracting manufacturing sector that rekindled recession fears, the harsh reality of the Sino-American trade war weighing on profits, downbeat business confidence and mushrooming capex slowdown signals all warn that…

Highlights The lingering global manufacturing recession and the substantial drop in U.S. bond yields have been behind the decoupling between both EM stocks and the S&P 500, and cyclical and defensive equities. Neither the most recent economic data,…

Dear Client, We will not be publishing a report next week as we take an end-of-summer break. Our next report will be published on Tuesday, September 10th. Best regards, Robert Robis  Highlights Canadian Corporates: The small but growing…

Highlights Portfolio Strategy The sustained global growth slowdown, widening junk spreads, along with the risk of a U.S. recession becoming a self-fulfilling prophecy suggest that caution is still warranted in the broad equity market on a 3-12 month time…

Highlights The plunge in government bond yields means that There Is No Alternative to stocks: TINA. As long as bond yields stay reasonably low, stocks will continue to climb the proverbial wall of worry. Global equities are quite cheap compared with bonds…

Dear Client, Please note that there will be no regular Weekly Report next week, as we take a summer break. Our regular publication will resume September 6th. Best regards, Chester Ntonifor, Vice President Foreign Exchange Strategy Highlights Our PPP…

Highlights Today’s equity risk premium of 1.6 percent makes equities the preferred long-term asset-class versus bonds at the current level of bond yields. The caveat is that this conclusion would quickly change if bond yields were to rise significantly.…