At the halfway point, 2023 presents a much more compelling financial environment than last year.
Most asset classes are generating positive returns and if this trend persists, this year will deliver a gripping performance. It bears mentioning that recent economic data have been surprisingly robust, meaning that the anticipated economic recession has been delayed or even called into question. Central banks are in the process of winding down their tightening cycles, and for the moment, consumers seem resilient. However, continued caution is imperative since rate hikes, which were initiated several months ago, generally have a delayed effect. In any case, we are keeping the iA PAR participating account close to its allocation targets. In the event of a recession, the U.S. stock market could be further buffeted and that would be an opportunity for us to invest. We favour high-quality securities, and our dedicated corporate bonds team makes adjustments to optimize risk-return trade-offs. We remain cautious regarding real estate as this sector may continue to undergo contraction.
