In the first video, we highlight the long-term decline in interest rates and note how rates are at 100-year record lows. We even see negative interest rates! Negative rates are supposed to stimulate borrowing and we note that credit is available but demand for this credit is lacking. There are over 17 trillion dollars worth of global bonds with negative yields which creates a huge challenge for investors to generate income. We also highlight how no one can predict the best performing segment of the market and so having a diversified portfolio is the best solution. Diversification remains a top priority for us and we continue to refine and improve our processes to serve you well in the long- run.
In the second segment, we review all the major market indices and how they have performed. From bonds to the various stock markets, from oil and gold to currency. It’s a broad overview that gives a framework and idea for what type of environment we’ve been in so you have context when reviewing your portfolio’s performance. The quarter was as they say a “goldilocks quarter”; not too hot nor too cold. A quick overview: bonds regained value, Canada & the US were completely flat, oil was down and gold performed well. Despite the overall economic slowdown, we believe we have a classic case of “stay the course” as your best action.
In the third and final segment in our series, Brent digs deeper into our model portfolios – our asset allocation positioning, how each model portfolio performed and how we’re positioned going forward. You may have read or heard in the media that there are increasing signs of a recession but don’t believe everything you read…we’re cautious but not yet in the “red zone”. We remain neutral in our view and are staying invested. Low volatility ETF returns have been good, our equity model was up 2.1% and we are excited to share a new focus on social responsibility in our investment process.
Our over-arching philosophy remains and that is: holding investments in quality businesses over the long run is the key driver of investment returns and our disciplined asset allocation process helps us do this. We remain confident that our portfolios will give the results you need to achieve your goals over the long-run.