We came across a chart that shines a bright light on equity markets this year. The market’s overall state is bearish, apart from a very few major technology firms, and broader valuations are not as ‘expensive’ as some may suggest. We can assert that certain market segments are, indeed, attractively priced.
Bank of Canada extends pause on rate hikes, expects slower growth
The Bank of Canada maintains its 5% benchmark interest rate as it notes a cooling economy and eases inflation. While the possibility of further rate hikes remains, experts suggest the peak might have been reached. Inflation is still above the 2% target and concerns about global conflicts affecting energy prices persist. Experts anticipate rate cuts in mid-2024.
Further thoughts on Sea Change
In his memo, Howard Marks underscores the need for substantial capital reallocation due to significant shifts in the investment landscape marked by the end of a prolonged period of low interest rates and easy economic conditions. He also encourages institutional investors to consider reallocating capital towards credit instruments.
Millionaire Migrations
This year global migration of High Net Worth Individuals (HNWIs) is on the rise, with an expected 122,000 HNWIs relocating to new countries, driven by factors such as Australia's appeal, China's notable HNWI outflow, and the allure of investment migration. North America, specifically the USA and Canada, is witnessing increasing interest in outbound investment migration, while Europe and the Caribbean are becoming popular destinations.
We hope you enjoyed our curated insights for this month. If you found this interesting, feel free to share. For any inquiries, please reach out to our team.