Invesco Canada blog

Insights, commentary and investing expertise

A harbinger of what’s to come?


March 22, 2021
Subject | Industry views | Invesco | Macro views

Weekly Market Compass: Last week gave us a glimpse into the mindset of U.S. business owners, the U.S. Federal Reserve, the Biden administration, and investors. I believe that much of the news we saw last week may be a harbinger of what’s to come over the course of 2021.

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How much longer can the ‘recovery’ trade last?


March 12, 2021
Subject | Industry views | Invesco | Macro views

It’s hard to believe that roughly one year has passed since the outbreak of the novel coronavirus (COVID-19). Equally astonishing is the fact that the broad U.S. stock market has kept pressing to new highs, alongside forceful blasts of central bank liquidity and government stimulus checks.

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I’m not concerned about long-term inflation. Here’s why.


March 5, 2021
Subject | Industry views | Invesco | Macro views

Market drawdowns are never fun.  But for all the hand wringing over the current market downturn and the pain in the long-duration trade, let’s not forget that in many ways, this is playing out as we had hoped.  It was only one year ago when the first case of the SARS-CoV-2 appeared in my home state of New Jersey.  If you had told me then that 12 months later the U.S. economy would produce 379,000 jobs in the prior month,1 the 10-year U.S. Treasury yield would be flirting with 1.60%,2 and the U.S. 10-year inflation breakeven would be over 2.2%,3 then I would have slept much better that night. 

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Will higher bond yields kill the bull market in stocks?


March 2, 2021
Subject | Industry views | Invesco | Macro views

The answer to that question depends on the reason why interest rates are rising. If it’s because real economic growth is picking up, that should be good for stocks through the earnings channel. If it’s because inflation is getting out of control, that should be bad for stocks through the valuation channel.

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