The investment markets currently find themselves in a dog fight between two enemy aircrafts: inflation and rising interest rates. If one were to look beyond the horizon of stock market performance this year and focus on the pilot’s economic indicator instruments inside the cockpit, it would reveal a stark contrast.

There are several uncertainties on the investment horizon. These concerns are building a significant wall of worry for investors, leaving them wondering whether these factors will be strong enough to cause a recession. More importantly, investors are left pondering what they should be doing within their portfolios. Let’s start by addressing the concerns to help investors filter the noise and focus on what matters.

The investment landscape constantly evolves, like navigating your way through a golf course. In the investment world, global central banks design the course, and it’s up to us as investment managers to understand how the course is laid out and manage our shots accordingly.

The U.S. Federal Reserve sets interest rate policy for the largest economy in the world. Whether the U.S. central bank is tightening financial conditions (increasing interest rates or reducing asset purchases) or easing financial conditions (lowering interest rates or increasing asset purchases), is therefore closely monitored by economists and investment managers around the world...

What’s said at Jackson Hole matters to global stock and currency markets. Central bankers and financial heavyweights meet annually at this exclusive economic symposium to discuss challenges, implications and policy that can affect us all.

Sustainable investment assets (excluding fund of funds) hit CAD$26 billion in Canada. This represents a quarter-over-quarter growth rate of 22% and a year-over-year growth rate of 130%. In the U.S., 2020 saw sustainable investment funds grow by USD$51.1 billion. More and more money continues to flow into ESG investment vehicles and the money being invested is outperforming investment vehicles that have not incorporated some form of ESG investment factors.

Back in November of 2020, we published a Matco Insights piece titled “The Inflation Debate and What it Means for Your Portfolio”. Within that publication, we primarily focused on the relationship between inflation and the labor market, as well as inflation and government spending. The conclusion was ultimately that inflation is more likely to be a persistent concern when the following two conditions are met: government debt is at lower levels and unemployment rates are much lower.

In the early stages of digesting Canada’s first Federal Budget in more than two years, we wanted to provide a flash update with the primary highlights. Canada’s 2021 Federal Budget outlines CAD$101 billion in new government spending over a three-year period to fuel the economic recovery while continuing to bridge the growth gap due to the COVID-19 pandemic.

The preferred share segment of the market has often attracted individual investors seeking yield. In recent years, this demand has been further reinforced by a low-interest rate environment, which has created challenges for investors looking to generate income within their portfolio.

When it comes to making an investment, there are several factors that will influence whether the outcome is successful. One of those factors, which is built directly into our investment process at Matco, is value.

The current U.S. election was one for the ages, with record voter turnout and an extended vote count period due to the increased number of mail-in ballots. Although it appears that Joe Biden will become the 46th President of the United States come January of 2021, some uncertainty remains.

There has always been a lot of debate as to whether ballooning government deficits will lead to significant levels of inflation. This debate also leaves investors wondering if they should be protecting their portfolio from the possibility of inflation.

Within our Matco investment process, there are two primary layers of investment management. The first layer is security or stock selection, which is similar to choosing the ingredients for a recipe.

The world of bonds, the boring capital market security that has failed over the years to provide the same dramatic appeal and excitement as the stock market.

In this edition of Matco Insights, we take a closer look at the upcoming Saudi Aramco IPO while exploring some worthwhile market implications and considerations. More specifically, how could this potentially historic milestone within the energy sector impact the markets and your portfolio.