Invesco Canada blog

Insights, commentary and investing expertise

Market review: The summer of a hundred paper cuts


Global Market Strategist, Invesco Ltd.
August 2, 2017

Subject | Institutional | Invesco | Macro views

Those of us who work in offices have our own kind of occupational hazards – not the least of which is the paper cut. While hardly dangerous, a paper cut can range from harmless but annoying to mildly painful. The good news is that we rarely get more than one paper cut at once. But what if we experienced a hundred or more paper cuts around the same time? While they may not be deadly, they could certainly cause some serious suffering.

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Emerging from the shadows – the case for emerging markets


Senior Portfolio Manager, Invesco Ltd.
August 1, 2017

Subject | Active management | Institutional | Invesco | Macro views

After an extended period of weakness, emerging market equities have rebounded nicely year-to-date – outperforming developed market stocks by a sizeable margin, as measured by the MSCI Emerging Markets Index and MSCI EAFE Index.1 In my view, this strong performance has been driven by better macroeconomic conditions, strong earnings growth and discounted valuations relative to developed market equities.1

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Are smart beta ETFs skewing stock valuations?


Global Head of ETF Capital Markets, PowerShares by Invesco
July 28, 2017

Subject | ETFs | PowerShares | Smart beta

Thanks in large part to the popularity of smart beta and factor-based strategies, adoption of exchange-traded funds (ETFs) has grown rapidly in recent years. Some have even speculated that the growth of ETFs is skewing the valuations of certain stocks. I do not believe that is the case. Below, I explain why.

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Market review: Are emotions overriding facts?


Global Market Strategist, Invesco Ltd.
July 26, 2017

Subject | Institutional | Invesco | Macro views

Global stocks moved higher last week, driven by a U.S. stock market that continued to advance despite a plethora of negative headlines and a growing likelihood that U.S. President Donald Trump’s legislative agenda will not come to fruition in 2017. In addition, U.S. stock-market volatility, as measured by the VIX Index, remains very low. It’s almost as if U.S. stocks have a Teflon-like coating around them, shielding them from the brunt of negative news. But why?

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Working capital: The worst kind of expense


Vice President and Portfolio Manager, Invesco Advisers, Inc.
July 20, 2017

Subject | Active management | Institutional | Trimark

As active portfolio managers, we seek to identify and exploit inefficiencies in the marketplace. One major inefficiency, in my view, is the common fixation on earnings-based valuation metrics. Focusing on free cash flow, rather than net income, EBIT or EBITDA, allows us to find valuation arbitrage opportunities based on gaps in accounting earnings and free cash flow.

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