In his Q1 market update, Wayne Gillespie offers his perspectives on a volatile quarter where inflation and concerns over Ukraine are influencing global markets.
“Broadly speaking, uncertainty is high across all facets of the fixed income spectrum, not only because of the incidents involving Ukraine, but also a flattening of the yield curve as well as inflation fears.”
Here are a few highlights:
- Canadian markets are outperforming their counterparts due to a rally in commodities triggered by the Russian invasion of Ukraine.
- The rally in commodities is fueling increased concerns about rising inflation.
- Canada’s economy has now extended its monthly gains to 10 leading economists to predict that The Bank of Canada will raise rates by .50 bps at each of the next three sessions.
- Global fixed-income markets experienced losses over the quarter largely due to the uncertainty concerning Ukraine, the flattening of the yield curve, and inflation fears.
- IPC’s Portfolio Management Team continues to favour a diversified stance while maintaining exposure to strategies that can protect against volatility.