Invesco Canada blog

Insights, commentary and investing expertise

Outlook 2017: Global opportunities after a year of surprises

With 2016 complete, global investors can reflect on a volatile year, full of surprises. A double-digit correction in the first six weeks welcomed investors into the new year, sparked by a December 2015 rate hike in the U.S., as well as concerns over the slowing Chinese economy. Post-decline, equities rebounded strongly, aided by global central bank support and surging commodity prices. Emerging -market equities benefited most from the rally in commodities. Central bankers – the Bank of Japan (BoJ), the European Central Bank (ECB) and the U.S. Federal Reserve – soothed investors’ nerves throughout the year with their accommodative policies and/or dovish rhetoric. Other factors driving investor sentiment included rebounding oil prices as well as a strengthening housing market in the U.S.

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Outlook 2017: Finding opportunities when valuations are high

The prospects for 2017 are likely to be heavily informed by what we have seen in the years since the financial crisis. Since 2008/2009, economic policy has focused almost exclusively on austerity measures and loose monetary conditions, such as ultra-low (and even negative) interest rates and quantitative easing (QE) programs. These measures were intended to slow the growth of debt relative to gross domestic product, to lower-risk free interest rates and stimulate economic activity. Whilst they have been successful to the extent that they have averted a 1929-style depression and a collapse of the banking system, they have been largely ineffective in engendering significant growth in the real economy.

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Outlook 2017: Growth, debt and liquidity in Chinese equities

Looking ahead to 2017, the Invesco Equity Investment Team in Asia believes the focus of attention for the Chinese economy and equity markets will be on growth, debt and liquidity. We expect China’s policymakers to focus their efforts on near-term growth stability, with reforms taking a secondary role for now.

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Outlook 2017: Real estate themes to watch

Investors have been drawn to real assets in general and to real estate in particular due to the comparative stability and attractiveness of their income returns and the prospects for growth.

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Outlook 2017: Factor investing in the coming year

Although it may sound like a well-worn cliché, we are at a critical juncture as 2017 approaches. Two important tests of voter sentiment – the U.S. general elections and the U.K.’s referendum (Brexit) to leave the European Union (EU) – have occurred in less than six months’ time, and the ramifications could prove profound. Although the U.S. is now in the seventh year of an economic expansion, the current recovery is among the slowest on record and has been subject to bouts of market volatility that have buffeted the financial markets and tested investors’ resolve.

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