Invesco Canada blog

Insights, commentary and investing expertise

In the months since the initial coronavirus outbreak, we saw the economy and markets teeter on the brink of collapse, only to recover quickly. I recently sat down with my colleague and Investment Strategist, Talley Leger, to discuss the sustainability of this recent recovery.

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EU passes stimulus package while U.S. lawmakers continue to negotiate


Global Market Strategist, Invesco Ltd.
July 27, 2020

Subject | Coronavirus impact | Macro views

When I was in high school, we read Henry James’ “The Europeans” in our English Literature class. A major theme in the novel is the contrast between Europeans and Americans, with Americans in the “New World” somewhat ironically portrayed as conservative, traditional and more focused on money, while Europeans are portrayed as less traditional, more progressive and more emotional. I have thought about that book a lot in the past week.

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Answers to pressing questions from investors


Sr. Investment Strategist Invesco Thought Leadership
July 23, 2020

Subject | Macro views

We were joined recently by clients for a discussion about global investment opportunities, in the context of technically overbought conditions in US stocks. In this blog, we share our views regarding where we see risks and opportunities in international stocks.

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Locked-in plans: Types of plans and unlocking options


July 22, 2020

Subject | Tax & Estate

Picking up from last month’s blog post, let’s continue our look at locked-in plans. Similar to Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs), locked-in plans also consist of pre-retirement plans and post-retirement plans. In addition, specific rules relate to unlocking amounts from these plans.

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As U.S. virus cases grow, so does the case for ‘big government’


Global Market Strategist, Invesco Ltd.
July 20, 2020

Subject | Institutional | Macro views

As coronavirus cases grow in the U.S., more fiscal stimulus appears to be on the way, which I believe is movement in the right direction. Ultimately, I expect the U.S. to fall into a pattern where, every month or two, Congress must pass a new stimulus package to keep the economy going, especially if the curve is not successfully bent.

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When valuing businesses, cash flows matter more than forward multiples


Senior Portfolio Manager, Invesco Canada Equity team
July 16, 2020

Subject | Active management

During a recent webinar, I was asked whether we have enough real data to see what forward P/E multiples look like, or whether the market is just ‘guessing.’ This is an interesting question that highlights a very important point when it comes to valuing businesses.  It highlights the danger of using forward multiples to evaluate long term intrinsic value1.  Significant business disruption, either as a result of the current pandemic or an abrupt downturn leading to a recession (think Global Financial Crisis) can significantly impact forward P/Es.  However, these events do not have the same impact on the intrinsic value of a high-quality business.  The key distinction is that forward P/Es rely on one year of earnings while a company’s intrinsic value is a function of all of its future cash flows.

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