FLCA News and Press, Franklin FTSE Canada From 01/11/23

Summary After enduring one of the worst years on record across asset classes, investors should find more cause for optimism in 2023, even as the global economy faces challenges. Inflation is likely to moderate, and risks to the inflation outlook appear more balanced than they did severa...

Summary In the first quarter of 2021, residential ‘investment’ in Canada (real estate commissions, construction of homes, significant renovations, and ownership transfer costs) comprised some 9% of Canada’s GDP, while business investment plunged. Since 2022, a rapid...

Summary There were ample causes for this global downdraft in equity markets. Global equity markets look likely to face a global recession in 2023, which appears to have already begun in the final quarter of 2022. Equity markets will face a tough global environment in 2023, particula...

Summary Will central banks push economies in recession in 2023? The battle against inflation and whether central banks are winning. Why there may have to be job market destruction before interest rates can come down. Economic resiliency, especially in the job mar...

Summary The Bank of Canada hiked their policy rate to 4.25% to fight inflation. This was the seventh rate hike this year. The Bank of Canada reported a third quarter loss of C$522, the first loss in their 88-year history. Through Quantitative Tightening, their balance sheet has...

Summary Why are bonds taking a big hit? As the rate hike cycle moves closer to the end, could a generational opportunity in fixed income be emerging? How do long term capital market expectations look? Are GICs recommended? Rising interest rates have inflicted m...

Summary Bank of Canada, ready to pause rate hikes? Why the end of the tightening cycle may be near, even though inflation is still high. Bank of Canada: why the next decision may be based on data, and not a predetermined path. The Bank of Canada delivered yet another interest ...

Summary The Bank of Canada raised policy rates another 50bps today, taking base rates in the banking system to 4.25% from .25% at the start of the year. Some 20% of Canada’s $2 trillion in mortgage debt was borrowed when rates were 1.5% compared with more than 5% today (BMO data)...

Summary What the latest Canadian GDP data means for Bank of Canada rate policy? Will the Bank of Canada hike rates by 50 or 25 basis points and are we getting closer to the end? What are the risks of a recession in 2023? The latest Canadian GDP report shows that th...

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....