Invesco Canada blog

Insights, commentary and investing expertise

You can’t train a great white shark – or control global trade


Global Market Strategist, Invesco Ltd.
August 12, 2019

Subject | Macro views

One of my all-time favorite movies is “Jaws,” an iconic American summer movie about a great white shark that terrorizes a seaside New England resort town. Maybe it’s because I like the musical score, or maybe it’s because I like hearing my last name interspersed throughout the movie (a particularly noteworthy line is “Hooper drives the boat, Chief”), but I can be found watching the movie at least several times each summer. In fact, I like the movie so much that I’ve watched documentaries and read articles about the making of “Jaws.” My husband thought that was a strange and ridiculous waste of time, but I actually learned some very interesting factoids.

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Stock market sell-off underscores trade war dangers


Global Market Strategist, Invesco Ltd.
August 6, 2019

Subject | Macro views

Monday’s significant market sell-off reflected fears about escalating trade tensions, which caused investors to panic. This sell-off should not come as a surprise to those who recognized that stocks were vulnerable because the market wasn’t fully pricing in trade tensions. I view this as a healthy re-pricing of stocks to more fully factor in the potential that the trade war is likely to drag on.

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Idea generation in the investing world

A frequent topic of discussion in the investing world is idea generation — how do you best come across great investing opportunities? Among the typical avenues that institutional investors explore are conferences, management roadshows (where a broker brings a management team to see investors in a city), screening tools, and their own professional networks.

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Measure twice, cut once: Fed delivers expected cut


August 1, 2019

Subject | Invesco | Macro views

The U.S. Federal Reserve (Fed) cut rates by 0.25% for the first time in over a decade,1 a move largely expected by the market. Heading into the July Federal Open Market Committee (FOMC) meeting, much of the debate was around whether or not the Fed would deliver 25 or 50 basis points. However, we were focused on the statement and Fed Chairman Jerome Powell’s press conference for further insight on future policy. Future policy, or the Fed’s reaction function, is particularly important as we navigate in an environment where we believe market pricing indicates more cuts than our economic outlook would imply.2

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This week the Fed will remind us that it’s the world’s central bank


Global Market Strategist, Invesco Ltd.
July 29, 2019

Subject | Invesco | Macro views

Back when I was in high school, I worked as a lifeguard. I thought it would be a great job, with an opportunity to get a tan and do some summer reading. However, it was a lot of responsibility for a 15-year-old, and I found myself running around with a first aid kit, bandaging cut toes and knees, and even having to perform a water rescue in my first few weeks on the job. I soon realized that I could save myself a lot of trouble, especially since I hated the sight of blood, if I strictly enforced the rules – like no running in the pool area – in order to pre-empt accidents and other mishaps.

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Don’t be so negative: Finding value in U.S. corporate bonds


Senior Portfolio Manager, Invesco Fixed Income
July 25, 2019

Subject | Institutional | Macro views

As yields across the globe plummet, many investors are now actually paying someone to take their money. Currently, there are more than US$12 trillion of bonds with negative yields outstanding which equal 24% of the global bond market.1 In Europe, the search for positive yield is especially challenging. Over half (51%) of the European bond market now yields a negative rate.1 Germany recently issued €5 billion of bunds at a price of €101.5, but these will only return €100 in two years with zero coupons paid.2 And according to Reuters, Austria is also rumoured to be planning to issue a 100-year bond at roughly 1% to feed yield-hungry investors.

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