Invesco Canada blog

Insights, commentary and investing expertise

Good news is bad news: Deconstructing the market sell-off


Global Market Strategist, Invesco Ltd.
February 13, 2018

Subject | Institutional | Invesco | Macro views

Stocks globally have experienced more than a week of tumultuous trading, with the U.S. stock market officially in correction territory. And after being relatively sedate for years, the VIX Index has risen dramatically in recent days, indicating rising volatility. Stocks have moved so far so fast that investors have experienced financial whiplash and are trying to understand what caused markets to change course so abruptly. To put it simply, almost everything that should be a positive for stocks is now a negative for stocks.

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Above-trend growth could cause U.S. inflation later in 2018


Chief Strategist and Head of Multi-Sector, Invesco Fixed Income
February 12, 2018

Subject | Institutional | Invesco | Invesco Fixed Income (IFI) | Macro views

Employment growth has been strong enough that the Bank of Canada (BOC) hiked its overnight target rate to 1.25% in January.1 The BOC statement attempted to balance the view that growth was near capacity with concerns that raising rates too quickly could cause the economic expansion to stall. The 10-year yield has broken through its previous peak of 2.15% on the growth story and a modest pickup in inflation.2 We believe yields should continue to move higher from these levels.

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Emerging markets as a source of corporate revenue


Head of Emerging-Markets Equities, Invesco Hong Kong Ltd.
February 9, 2018

Subject | Active management | Macro views | Trimark

As you may well know by now, Trimark portfolio managers are not macro investors. We don’t spend our time formulating top-down macro views. Instead, we research individual companies to find those that we believe offer the best return potential.

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What does market volatility mean for fixed income?


Chief Strategist and Head of Multi-Sector, Invesco Fixed Income
February 8, 2018

Subject | Active management | Institutional | Invesco | Invesco Fixed Income (IFI) | Macro views

Market expectations of inflation have risen in recent days, after signs of wage growth – often seen as a harbinger of inflation – appeared in the January jobs report. We at Invesco Fixed Income believe investor concerns that inflation is finally showing signs of life have helped drive interest rates higher and impacted credit markets, where worries over higher interest rates (and their potential impact on companies) have caused declines in stock markets and other risky assets.1

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A rising tide for fixed income?


Senior Portfolio Manager, Invesco Fixed Income
February 7, 2018

Subject | Active management | Invesco | Invesco Fixed Income (IFI)

In my recent blog on the impact of the tax reform, I explained why I believe the new tax law should be extremely supportive of the U.S. investment grade (IG) bond market, including provisions that could lead to reduced supply. Looking beyond IG, the news appears to look good for other fixed income sectors as well.

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Lessons from the stock market sell-off


Global Market Strategist, Invesco Ltd.
February 5, 2018

Subject | Invesco | Macro views

Last week ended on a bad note. The yield on the 10-year Treasury moved up from 2.695% to 2.852% in just five days,1 spiking on the release of the U.S. employment situation report for the month of January. Not only did yields globally then rise, but this brought on the biggest sell-off in U.S. stocks in nearly two years – which then spread to Europe and Asia, putting downward pressure on equities in those regions. As I write this, futures suggest an extension of the sell-off today.

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