Invesco Canada blog

Insights, commentary and investing expertise

Brexit: The consequences of economic policy uncertainty


Global Market Strategist, Invesco Ltd.
May 6, 2019

Subject | Industry views | Institutional | Invesco | Macro views

Economic policy uncertainty has for decades been recognized by economists as having the potential to negatively impact economic growth. In 2015, economists Huseyin Gulen and Mihai Ion found that economic policy uncertainty has a strong negative correlation to business investment.1 This built on previous research from the 1980s that showed that high uncertainty gives firms an incentive to delay investment decisions, especially in situations where reversing an investment decision can be costly.2

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Bank of Canada shifts back to data dependency


Senior Portfolio Manager, Head of North American Rates Portfolio Management, Invesco Fixed Income
April 24, 2019

Subject | Invesco | Macro views

The Bank of Canada (BoC) left the target rate unchanged at 1.75% at Wednesday’s meeting. While the outcome was expected, the tone of the statement was certainly on the dovish side.

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Looking for clues on growth


Global Market Strategist, Invesco Ltd.
April 22, 2019

Subject | Invesco | Macro views

In the past several months, we have seen central banks make an abrupt turn toward a more dovish monetary policy stance. The initial assumption by markets was that this was a decisive turn. However, more recent communications suggest otherwise. As doubts about economic growth continue to grow, so does uncertainty about the path of policy.

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Can central banks still be effective?


Global Market Strategist, Invesco Ltd.
April 17, 2019

Subject | Invesco | Macro views

Last week was a momentous one for central banks – the minutes from the March Federal Open Market Committee (FOMC) meeting were released, giving us insight into the Federal Reserve’s views on the global economy and rate cuts, and the European Central Bank (ECB) decided to remain on its ultra-accommodative path. We were reminded that central banks are critical for supporting growth, controlling inflation and stabilizing economies – a task that is growing increasingly difficult as these institutions become more politicized.

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What’s your risk outlook?

I have the good fortune of meeting with advisors across Canada and hearing directly about the issues that are top of mind for their clients and their businesses. Usually there’s a certain amount of consistency to what they tell me in terms of sentiment in the market. The big picture view of asset class trends also tends to provide a consensus on where advisors are actively making allocations and how they are positioning investor portfolios.

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