Invesco Canada blog

Insights, commentary and investing expertise

A dovish Fed and an inverted yield curve spark market concerns


Global Market Strategist, Invesco Ltd.
March 25, 2019

Subject | Invesco | Macro views

Monetary policy disruption was on full display last week: The U.S. Federal Reserve (Fed) announced a momentous change to its normalization plan, the yield curve inverted and sparked investor concerns, and a noted Fed critic was nominated to the central bank’s Board of Governors.

Continued

Comments Off on A dovish Fed and an inverted yield curve spark market concerns

The Fed delivers on the dovish side


Senior Portfolio Manager, Head of North American Rates Portfolio Management, Invesco Fixed Income
March 22, 2019

Subject | Invesco | Macro views

The Federal Reserve (Fed) held the target range for the U.S. federal funds at 2.25%-2.50% at its meeting on Wednesday. This outcome was in line with market expectations. In addition, the Fed indicated they do not expect to hike rates again in 2019 and only expect one hike in 2020.

Continued

Comments Off on The Fed delivers on the dovish side

Fighting the ‘algorithm wars’

Artificial intelligence (AI), quant funds, high-frequency trading, big data — these terms get thrown around a lot these days and can create confusion and uncertainty. (Case in point: Tesla CEO Elon Musk has said that AI is more dangerous than nuclear weapons, with Facebook CEO Mark Zuckerberg calling such statements “pretty irresponsible.”1)  Beyond such dramatic statements, it’s clear to see that quants and high-frequency traders (HFTs) account for more than half of all US equity trading. How does all of this fit into the investing world as we see it?

Continued

Comments Off on Fighting the ‘algorithm wars’

Brexit uncertainty could last for another 21 months


Global Market Strategist, EMEA
March 20, 2019

Subject | Institutional | Invesco | Macro views

The latest installment of the Brexit drama offers good and bad news for investors in U.K. assets and beyond: The good news is the risk of a “no deal” Brexit has receded, but the bad news is it’s still a possibility and the timeline toward resolution is now more extended. This means that persistent uncertainty is likely to continue to weigh on the U.K. and wider European economies, and may elevate the volatility of U.K. asset markets, particularly the currency.

Continued

Comments Off on Brexit uncertainty could last for another 21 months

Politicization: A growing threat to central banks


Global Market Strategist, Invesco Ltd.
March 18, 2019

Subject | Institutional | Invesco | Macro views

The United States has always had a difficult, complicated relationship with the concept of central banks. Early on, critics sought to prevent the establishment of a U.S. central bank, while today, politicians in the U.S. and around the world seek to use central banks as tools to further their policy aims. In my view, central bank independence is critical to their ability to counteract the economic effects of geopolitical chaos.

Continued

Comments Off on Politicization: A growing threat to central banks

Change is in the air as the Fed, BOC and ECB pivot on policy


Global Market Strategist, Invesco Ltd.
March 14, 2019

Subject | Institutional | Invesco | Macro views

There is an old Chinese proverb that states, “When the winds of change blow, some people build walls and others build windmills.” In other words, some people embrace change while others fear it. I’ve come to the conclusion that the speed of the change has much to do with how a change is received. Just look at the past week, when we saw abrupt changes in the direction of the wind for central banks, followed by largely negative reactions.

Continued

Comments Off on Change is in the air as the Fed, BOC and ECB pivot on policy