The Canadian market is resilient as US equity valuations reach historically low levels. Find out why.
Key takeaways from this month's comment by Jean-Pierre Chevalier and Marc Gagnon:
- Despite difficult market conditions, the Canadian portion of the Fund performed relatively well. The underweight in Shopify contributed positively to performance.
- US economic growth is softening as supply normalizes in goods and labour. This should help get inflation under control and abate the rise of long-term interest rates. Commodities and politics remain the wildcards.
- Still in the US, dislocations are apparent in many structural growth opportunities, but selectivity remains important. Biotechnology and software valuations are interesting.
- US equity indexes have a leadership problem. The strategy is to look for the thematic winners of this decade, not the previous one.
Jean-Pierre Chevalier, CFA
Senior Director, Portfolio Manager, US Equities and Thematic Investing
Marc Gagnon, M. Sc., CFA
Principal Portfolio Manager, North American Equities