FLCA News and Press, Franklin FTSE Canada From 11/12/22

Summary Why the declines in tech on the S&P 500 may be hiding strength in other sectors from investors. The energy sector may still provide opportunities for investors. Insurers are not suffering the same challenges as other financials in the current high-rate environment....

Summary What strong jobs numbers may mean for interest rates going forward. U.S. employment data may have been mixed, but likely not enough to sway the Fed. How do we know we've reached peak job creation? Resilient job markets in both Canada and the U.S. coul...

Summary The duration or the Fed's tightening cycle may end up being longer than expected. Why the Fed's terminal rate has become a moving target. The big mistake for the Fed wouldn't be overshooting, it will be being premature in pivoting. Fed Chair Jerome Po...

Summary Yesterday, Fed chair Jerome Powell reiterated his commitment to combating inflation (lagging indicator) at the expense of economic growth, employment and asset prices (leading indicator). In an abrupt reversal, every market sector tumbled into the close, with 474 of S&...

Summary The Canadian 10/2s bond yield curve has been deeply inverted since July 2022 as the Bank of Canada stepped up interest rate increases to control soaring inflation. As a result, the slope for both the Canadian and US bond yield curves are close to converging to about minus ...

Summary Canadian monthly home sales in September were -32% year-over-year and 12% below the pre-pandemic 10-year average for September. Many who bought properties during the 2020-2022 frenzy are now underwater in terms of resale value. On the upside, much lower shelter and tra...

Summary Is the Fed ready to consider slowing its pace of rate hikes? Why the Fed will likely stay Hawkish at least for the time being. The Fed is likely to overshoot in its inflation fight for a simple reason: All of its data is backward looking. The U.S. Fed...

Summary Central banks across the globe are not in lock step with the U.S. Fed. Could this limit what the Fed could do? Will the Fed start signaling a less hawkist direction for rates? Finding bright spots in the fixed income market. Bank of Canada raised overnight ...

Summary The outlook on China stimulus. Bank of Canada slows pace of rate hikes. Q3 earnings season update. On the latest edition of Market Week in Review, Chief Investment Strategist for North America, Paul Eitelman, and Investment Strategy Analyst BeiChen Lin discus...

Summary Where opportunities might be emerging in the battered bond market. Why the bond market may face even more volatility. Bond market volatility. Is the bottom in sight? Global bond markets have suffered their worst selloff in decades, as central banks ag...