Canada Quarterly Investment Outlook - May 2019

Summary

  • Equity and credit markets have come roaring back as optimism returns, but government bonds are telling a different story.
  • This is still a late cycle environment, notwithstanding the difficulties of trying to time any economic rollover.
  • The U.S. growth advantage over Canada and Europe has widened, some of this reflecting temporary effects.
  • Very low Interest rates and high public debt put policymakers in a spot in any downturn. More unconventional policy will surely follow.
  • Canadian yield curve inverts but too soon to call it a recession signal. Also, too many market distortions.
  • Our credit views stay cautious. The amounts outstanding, large refinancing needs and weaker credit quality are all signals for caution.
  • It is doubtful that global equities can continue to rise unchallenged. Though large falls should be avoided for now, this is a good time for rebalancing away and keeping de-risking initiatives alive.
  • Some real assets are helpful strategic diversifiers, but real assets as a group could be coming into their own if inflation concerns surface.

To learn more about the May 2019 Quarterly Investment Outlook for Canada, download the full article above.


Important Information

This document and any enclosures or attachments are prepared on the understanding that it is solely for the benefit of the addressee(s). Unless we provide express prior written consent, no part of this document should be reproduced, distributed or communicated to anyone else and, in providing this document, we do not accept or assume any responsibility for any other purpose or to anyone other than the addressee(s) of this document. Notwithstanding the level of skill and care used in conducting due diligence into any organisation that is the subject of a rating in this document, it is not always possible to detect the negligence, fraud, or other misconduct of the organisation being assessed or any weaknesses in that organisation's systems and controls or operations.

This document and any due diligence conducted is based upon information available to us at the date of this document and takes no account of subsequent developments. In preparing this document we may have relied upon data supplied to us by third parties (including those that are the subject of due diligence) and therefore no warranty or guarantee of accuracy or completeness is provided. We cannot be held accountable for any error, omission or misrepresentation of any data provided to us by third parties (including those that are the subject of due diligence). This document is not intended by us to form a basis of any decision by any third party to do or omit to do anything.

Any opinions or assumptions in this document have been derived by us through a blend of economic theory, historical analysis and/or other sources. Any opinion or assumption may contain elements of subjective judgement and are not intended to imply, nor should be interpreted as conveying, any form of guarantee or assurance by us of any future performance. Views are derived from our research process and it should be noted in particular that we cannot research legal, regulatory, administrative or accounting procedures and accordingly make no warranty and accept no responsibility for consequences arising from relying on this document in this regard.

Calculations may be derived from our proprietary models in use at that time. Models may be based on historical analysis of data and other methodologies and we may have incorporated their subjective judgement to complement such data as is available. It should be noted that models may change over time and they should not be relied upon to capture future uncertainty or events.

This document does not constitute an offer of securities or solicitation of any kind and may not be treated as such, i) in any jurisdiction where such an offer or solicitation is against the law; ii) to anyone to whom it is unlawful to make such an offer or solicitation; or iii) if the person making the offer or solicitation is not qualified to do so. If you are unsure as to whether the investment products and services described within this document are suitable for you, we strongly recommend that you seek professional advice from a financial adviser registered in the jurisdiction in which you reside. We have not considered the suitability and/or appropriateness of any investment you may wish to make with us. It is your responsibility to be aware of and to observe all applicable laws and regulations of any relevant jurisdiction, including the one in which you reside. In Canada, Aon Hewitt Inc. and Aon Hewitt Investment Management Inc. (“AHIM”) are indirect subsidiaries of Aon plc, a public company trading on the NYSE. Investment advice to Canadian investors is provided through AHIM, a portfolio manager, investment fund manager and exempt market dealer registered under applicable Canadian securities laws.


About Aon

Aon plc (NYSE:AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance. For further information on our capabilities and to learn how we empower results for clients, please visit http://aon.mediaroom.com.

Aon Hewitt Limited
Registered in England & Wales No. 4396810
Registered office: The Aon Centre | The Leadenhall Building | 122 Leadenhall Street | London | EC3V 4AN

Copyright © 2019 Aon Hewitt Limited. All rights reserved.
Aon Hewitt Limited is authorized and regulated by the Financial Conduct Authority.

Nothing in this document should be treated as an authoritative statement of the law on any particular aspect or in any specific case. It should not be taken as financial advice and action should not be taken as a result of this document alone. Consultants will be pleased to answer questions on its contents but cannot give individual financial advice. Individuals are recommended to seek independent financial advice in respect of their own personal circumstances. The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Information contained herein is for informational purposes only and should not be considered investment advice.

This Quarterly Investment Outlook is intended solely to report on various investment views held by Aon Hewitt Investment Consulting ("AHIC"). The opinions, estimates, forecasts, and statements of financial market trends are subject to change without notice due to changes in the market or economic conditions. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. This material has been prepared for informational purposes only and should not be considered investment, accounting, legal or tax advice. It is not intended as an offer or a solicitation with respect to the purchase or sale of a security, and it should not be interpreted as such. Aon Hewitt Investment Consulting, Inc. is a federally registered investment advisor with the U.S. Securities and Exchange Commission. AHIC is also registered with the Commodity Futures Trade Commission as a commodity pool operator and a commodity trading advisor, and is a member of the National Futures Association.

Previous Flipbook
Making Retirement a Reality - A Call for Action (CA)
Making Retirement a Reality - A Call for Action (CA)

Aon Article in Benefits and Pensions Monitor on Defined Contribution (DC) and Financial Wellbeing

Next Flipbook
Aon DC and Financial Wellbeing Survey - Living the Dream - Global Summary
Aon DC and Financial Wellbeing Survey - Living the Dream - Global Summary

This summary outlines how Aon has conducted employee focused DC research across a number of key DC markets ...

×

How May We Help? Reach out to an Aon consultant now.

First Name
Last Name
Company
Job Title
Phone Number
Industry
Country
Comments
Aon group companies will use your personal information to contact you from time to time about other products, services and events that we feel may be of interest to you.  All personal information is collected and used in accordance with our privacy statement.

Please click here to manage your communication preferences
Someone will be in contact shortly!
Error - something went wrong!