The Price perspective

A gulf exists between Kamala Harris and Donald Trump on policy issues. Following is an executive summary of the third article in our U.S. election series in which we address key policy differences that matter most to the economy and stock market.

Despite signs of a slowing economy, corporate bond issuance kicked off the month at a record pace. We look at how the market has absorbed the new debt and what factors are likely to drive bond performance ahead.

The Bank of Canada lowered its benchmark interest rate to 4.25%, citing continued easing in broad inflationary pressures.

As U.S. rate cuts near, history shows stocks and bonds often perform well after the Fed starts easing cycles, with equities showing greater variability. Given mixed economic signals, the focus should be on quality in portfolio positioning.

While the U.S. president certainly has great influence, the formal and informal checks and balances built into the government’s structure still matter, and investors shouldn’t let election noise get in the way of sound portfolio management.

GenAI will likely have far-ranging repercussions on the economy, sectors, and business functions. We look at the potential impact and explore investment strategies we expect to benefit from the new era.

Recession risks have risen slightly as labour markets in the U.S. and Canada have cooled. We’re not past the point of no return, but investors should evaluate defensive options in their portfolios.

Four unresolved issues related to the selloff stand to hold sway over stocks. More volatility is likely, and we favor a defensive tilt in equity portfolios, focusing on high-quality shares that can better withstand further economic deterioration.

The market pullback will take time to play out. Planning for an eventual shift to defense beats a “hope for the best” approach.