Invesco Canada blog

Insights, commentary and investing expertise

2018 Investment Outlook: Can stability in the region extend Asia’s outperformance?

2017 has been a good year for Asian equities so far, rising 39% and outperforming the rest of the world.1 The strong performance has been supported by steady economic conditions and robust corporate earnings. Yet still, Asia is trading at its lowest price-book ratio relative to the S&P 500 Index in 15 years.2

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2018 Investment Outlook: China: 2018 growth may moderate, but reforms and innovation bode well for the longer term

Chinese equities caught investors by surprise in 2017 with a strong rally. Contrary to the pessimism over the past few years, investors have turned upbeat towards China, and for good reason: Economic data in general exceeded expectations, and we have seen broad-based earnings growth.

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2018 Investment Outlook: The synchronized economic expansion: How much further to run?

The global economy continues its synchronized recovery, as evidenced by robust data across regions. Indeed, all 45 countries tracked by the Organisation for Economic Co-operation are expected to post positive economic growth in 2017 for the first time in 10 years. Even more optimistically, 33 out of 45 countries are seeing accelerating growth. This has boosted international trade and commodity prices, and helped make the global expansion story gradually more self-sustaining. On this basis alone, the prospects for 2018 look positive, with broad-based improvements across the major developed economies and a number of emerging market economies expected to continue.

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2018 Investment Outlook: Potential risks facing the markets in 2018

Forecasting is notoriously difficult, and unexpected events can derail even the best educated estimates. Five of Invesco’s global CIOs discuss the most likely risks facing their base-case expectations for market performance in 2018.

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2018 Investment Outlook: Valuations to make 2018 a stockpickers market

The current market rally is one of the longest in history, and valuations in many markets may be stretched. Five of Invesco’s global CIOs explain their views on valuations and which markets might provide opportunities in 2018.

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2018 Investment Outlook: What to expect in 2018

Global markets continued to climb throughout 2017, across virtually all asset classes. Can this performance continue through 2018? Five of Invesco’s global CIOs discuss their base-case expectations for market performance in the year ahead.

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2018 Investment Outlook: Global fixed income markets look well-supported by macro factors

Macro

The current investing environment seems daunting. Markets have had a strong couple of years and valuations are tight. At the same time, risks abound. Geopolitical risks including North Korea, terrorism, Brexit and unpredictable politics in Europe and the U.S. make for an uncomfortable investing environment. In such uncertain times, it is important to use an investing framework to help manage through the many risks in the markets, to remind us of the markets’ key driving forces and to help measure the impact of events or potential risks.

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2018 Investment Outlook: More markets are thriving, but it’s critical to understand regional nuances

An increasingly synchronized economic upswing, the first since the global financial crisis, continues to support real estate market fundamentals around the world. More markets are now doing well, notably several in Continental Europe. This is a great positive and is creating opportunities for real estate investors.

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Embedded commissions: Where do we go from here?


November 28, 2017
Subject | Industry views | Invesco | Video

As you know, Invesco has been a vocal advocate of preserving choice in the market, allowing advisors and their clients to choose the business model that best suits their needs. I was recently asked to speak at the 2017 Advocis Symposium in Toronto. The title of the event was “Inflection Point” and I believe the industry is at just such a moment. I sat down with Greg Pollock, President and CEO, Advocis to discuss the future of embedded compensation.

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Three macro trends to be thankful for


November 21, 2017
Subject | Institutional | Invesco | Macro views | Trimark

This week marks Thanksgiving in America. This coming Thursday we will break bread and devour turkey with family and friends and, most importantly, take time to show gratitude for that which is good in our lives. The act of showing gratitude and giving thanks is a universal concept and one that I would like to indulge in this week’s commentary. In that spirit, I take stock of the past year and share with you three market and economic trends for which I am thankful:

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Interest rate outlook: Bank of Canada to pause

After raising the target overnight rate 0.25 percentage points at each of the previous two meetings, the Bank of Canada (BoC) kept the rate unchanged at its meeting on October 25, 2017. While growth has remained strong, it has slowed from the second quarter and the BoC appears ready to give its two previous rate hikes time to filter through the economy before taking further action. Additional uncertainty around the breakdown in North American Free Trade Agreement trade negotiations leaves the BoC cautious regarding future hikes. The Canadian 10-year yield appears to have peaked for the moment and yields have several reasons to fall from current levels, in our view.

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How vulnerable is the stock market?


November 14, 2017
Subject | Institutional | Invesco | Macro views

Last week saw the U.S. Senate introduce its version of the tax reform bill, which caused some concern among investors. The Senate version of the bill delayed the much-anticipated corporate tax cut until 2019. In addition, because it has some significant differences from the House bill, it raised uncertainty about Congress’ ability to pass tax reform this year – or at all.

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Nine things to watch in November

Despite October’s reputation as a precarious month for stocks, the equity markets made it through the month without so much as a hiccup, let alone a correction. Last month commemorated the 30th anniversary of the 1987 market drop, but investors did not get spooked by the supposed “October effect.” With October behind us, it is now an opportune time to keep in mind some of the things we will want to look for in November and beyond.

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An optimistic outlook for European stocks


November 6, 2017
Subject | Active management | Invesco | Macro views

Viewed through our Earnings, Quality and Valuation (EQV) lens, the Invesco International and Global Growth team remains optimistic on European equities given the region’s strong fundamentals. Since the second quarter, this trend has been consistent, and although some key metrics (such as retail sales) fell in both July and August, consumer confidence reached its highest level since April 2001, and the European Commission’s Economic Sentiment Indicator is now at its highest level since July 2007.1 This implies that gross domestic product growth in Europe could accelerate toward 3% in the near future.

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