Special Reports & Market Updates

Thoughts from our Portfolio Advisory Group on global markets and key developments

October 17, 2025 - We discuss the U.S. government shutdown, rising U.S.-China trade tensions, and why we’re watching Q3 corporate earnings season closely

The U.S. federal government remains shut down. While the broader economic impact has typically been modest, the absence of official economic data releases during the standoff adds a layer of uncertainty. For now, investor attention is shifting to the Q3 earnings season, with renewed U.S.-China trade tensions adding to the backdrop of uncertainty. We discuss these developments in more detail below.

Still Shutdown

We're now past the two week point of the U.S. federal government shutdown, with lawmakers still unable to agree on terms to pass a spending bill. It remains unclear what it will take to bridge the apparent divide between Republicans and Democrats on key issues such as health care insurance subsidies to reopen the government. Historically, U.S. government shutdowns have imposed only a temporary drag on growth, but the longer the shutdown persists, the greater the risk of more meaningful economic and market repercussions. With many federal workers furloughed and most government data releases on hold, the near-term economic outlook is increasingly difficult to assess.

Corporate Earnings

The quarterly reporting season kicked off this week, with U.S. banks setting a positive tone on the back of strong trading and investing banking revenues. In the absence of official U.S. economic data due to the government shutdown, company earnings and management commentary on the outlook will be especially valuable for insights into economic trends and consumer demand. We will be closely watching guidance for the remainder of 2025 and into 2026, particularly around capital expenditure plans and how companies are navigating unpredictable U.S. trade policy and tariff-related costs. Consensus estimates for the S&P 500 currently point to high-single digit year-over-year earnings growth in Q3, indicating that U.S. corporate earnings should continue to expand barring an unexpected shock. Given elevated valuations that already reflect a favourable outlook, strong earnings delivery will likely be essential to support the ongoing uptrend in equity markets.

North of the border, Canadian stocks have fared well year to date, benefiting from a rally in gold prices and solid performance from the banks. As Canadian companies begin reporting financial results, we will be monitoring commentary from export-reliant industries to gauge the impact of U.S. tariffs and from consumer-dependent firms for insights into domestic spending trends. For the S&P/TSX Composite, consensus estimates are anticipating roughly 9% profit growth this year and nearly 13% in 2026.

Trade Tensions

China-U.S. trade tensions have resurfaced after China’s recent decision to impose additional export controls on rare earths minerals. In response, the Trump administration has threatened "much higher" tariffs on China, potentially taking effect November 1. The latest escalations may be “tactical posturing” ahead of a bilateral meeting between Presidents Trump and Xi Jinping, which is still expected to take place in late-October. Moreover, the Trump administration has so far shown a reluctance to fully follow through on policies that have generated significant adverse market reactions. While markets initially reacted negatively to these headlines, they have since steadied, suggesting investors are likely taking the view that a deal remains the most probable outcome. Nevertheless, the risk of elevated volatility in the near term could linger if talks falter or rhetoric intensifies.

Takeaway

With the U.S. government shutdown clouding the economic picture and renewed U.S.-China trade frictions contributing to uncertainty, we expect the Q3 earnings season to play a central role in providing an update on the economy and anchoring market sentiment. While some short-term volatility is possible, we believe "invested, but watchful" remains a sensible stance for portfolios as we continue to monitor developments on trade policy and corporate earnings.

Thoughts from our Portfolio Advisory Group on global markets and key developments 

October 3, 2025 - We discuss the ongoing U.S. government shutdown

The U.S. federal government began a partial shutdown this week. While notable, the impact of these shutdowns on the economy and financial markets have typically been modest. Political developments such as these often generate headlines and can induce some short-term volatility, but history suggests their impact tends to be transitory. We discuss this and more below.

What’s going on?

Funding covering roughly a quarter of the budget for the U.S. federal government expired on October 1st, causing a partial shutdown that will disrupt a range of government services and the furlough of many federal workers. This is a storyline we’ve seen before, as partisan divisions once again drove a standoff over a budget agreement. Republicans are pursuing a narrower spending bill, while Democrats are seeking an extension of healthcare subsidies and a reversal of recent cuts to healthcare programs. Negotiations are reportedly ongoing, but it’s difficult to gauge what a final resolution will look like or when one will arrive.

Importantly, not all federal services “shut down”. Essential operations, including Treasury payments and mandatory spending programs like Social Security, continue uninterrupted. Federal workers, however, are typically placed on temporary leave and receive backpay when government financing is restored.

Economic and market implications

U.S. government shutdowns vary in length, often producing some near-term turbulence. Historical episodes show that U.S. stocks tend to weaken just before, during, and shortly after it ends. However, because most shutdowns do not last very long, the equity market impact is typically short-lived, with stocks usually regaining lost ground soon thereafter.

For the economy, U.S. government shutdowns can temporarily weigh on growth, but they have historically not been significant enough to derail ongoing expansions. The economy typically recovered briskly after a resolution. However, this shutdown comes at a more delicate time. The U.S. labour market has recently shown signs of softness, and President Trump’s proposed plans to dismiss federal workers during the shutdown add another layer of uncertainty. Moreover, the suspension of key economic reports, such as the monthly employment report, makes it harder for both policymakers and investors to assess economic conditions. Notably, the delay of major economic data makes the job of the U.S. central bank more challenging in the near-term as policymakers evaluate whether further interest rate cuts are warranted to support the economy.

Canadian roundup

North of the border, recent data suggests the Canadian economy is holding up despite persistent trade-related disruptions that have weighed on exports, business investment, and overall growth. Canadian GDP rebounded in July from a spell of recent weakness and RBC Economics now forecasts a modest expansion in the third quarter. Sentiment has also perked up, with strong equity market performance helping to lift household net worth in the second quarter, while softening home prices and lower interest rates have eased housing affordability pressures.

Takeaway

U.S. government shutdowns are not unusual. There have been 20 such episodes since 1976, according to RBC Economics, with most of them resolved in under ten days. While they can create short-term downside volatility, they have generally not been meaningful drivers for financial markets or the economy. We are closely watching labour market conditions, but in our view, U.S. government shutdowns are not a reason to change portfolio strategy.

Thoughts from our Portfolio Advisory Group on global markets and key developments

September 19, 2025 - We discuss recent monetary policy decisions in Canada and the U.S. and the potential economic implications

Following recent signs of weakening labour market conditions in Canada and the U.S., central banks in both countries have decided to reduce their benchmark interest rates, resuming monetary easing cycles that had been on hold amidst uncertainty in the broader economic and trade policy backdrop. We discuss the decisions, the market reaction, and the potential economic implications in more detail below.

Rate Cuts

The Federal Reserve (Fed) lowered its benchmark rate by 0.25% at its meeting this week, a move widely expected by markets and the first cut since December 2024. A series of softer-than-expected labour market data over the summer heightened concerns over a potential growth slowdown, while recent inflation readings showed less tariff pass-through than previously anticipated, giving the Fed room to act to cushion against downside risks in the economy.

The Bank of Canada (BoC) matched the Fed’s decision, reducing rates by a quarter-point this week. A high degree of USMCA compliance in trade flows and the removal of retaliatory tariffs on the U.S. has helped keep inflation in check, opening the window for the BoC to cut rates to support some trade-impacted sectors and a labour market facing rising unemployment. However, the BoC offered little guidance on the future path for monetary easing, with officials stressing that they would be “proceeding carefully” in an uncertain policy and economic environment.

Bond yields

Markets had largely priced in the latest rate cuts, which helped push government bond yields lower in Canada and the U.S. over recent weeks. Short-term government bond yields, which are more sensitive to central bank rate decisions, have fallen steadily since mid-July. Meanwhile, longer-term yields, which tend to be shaped more by broader growth and inflation expectations, also declined as markets weighed the prospect of weaker economic momentum ahead. After this week’s rate cut decisions, however, short- and long-term yields have diverged slightly, with short-term rates generally holding on to their recent declines and long-term rates edging modestly higher. This pattern suggests that markets believe these proactive rate cuts could help prolong the economic expansion and maintain stable growth and inflation expectations over the medium term, which tends to prop up longer-term yields.

Economic implications

Broadly speaking, rate sensitive areas of the economy should be poised to benefit from easier financial conditions, with housing likely a primary beneficiary. In Canada, housing market activity has picked up recently with existing home sales reaching a 2025 high this month amid relatively lower prices and improved inventory dynamics. However, the sector continues to face some challenges, including affordability constraints, slowing population growth and broader economic uncertainty. Lower financing costs could provide a timely boost to demand in the Canadian housing market. Similar dynamics apply south of the border, where lower mortgage rates could provide relief in a market constrained by affordability challenges and muted builder activity.

Elsewhere, more cyclical segments of financial markets could also benefit from the tailwind of lower borrowing costs, including smaller-sized companies, more economically sensitive sectors and lower-quality corporate borrowers. Nevertheless, a risk worth monitoring is inflation, as an overly aggressive approach to rate cuts could lead to renewed concerns around inflationary pressures, a potential source of market volatility.

Takeaways

The evolving balance of risk between inflation and the labour market has led central banks to place a greater emphasis on keeping the labour market on steady footing. Along these lines, the resumption of rate cuts is aimed at countering downside risks, as slowing job creation has become more evident. While easier financial conditions should provide broad support for the economy, there remains significant uncertainty over how far and how fast interest rates will fall, as central banks are also committed to maintaining inflation stability that is aligned with their long-term targets. We will be watching the future path of monetary policy closely alongside government bond yields as central banks navigate the complex tradeoffs between the labour market, inflation, and the broader economy.

 

Thoughts from our Portfolio Advisory Group on global markets and key developments

September 5, 2025 - We discuss September seasonality, recent economic readings, and moves in the bond market.

As Q2 earnings season concludes, we move into what’s historically been a weaker month for stocks. While economic data continues to show soft momentum, the prospect of monetary easing has shored up confidence and lifted many major global equity markets. Elsewhere, renewed questions about the sustainability of public finances across several major economies have been exerting upward pressure on long-term bond yields. We discuss more below.

September seasonality

Since 1928, September has been the S&P 500’s weakest month, with an average monthly decline of 1.2%, underperforming all other months. September returns were also negative 55% of the time over this period. Similar seasonal patterns are also seen in the U.K. and Canadian markets. Given this historical seasonality and with earnings catalysts largely behind us, market participants are likely to turn their attention towards economic data, monetary policy signals, and policy developments out of the White House. Beyond short-term seasonality, however, corporate earnings fundamentals continue to look solid and remain the long-term foundation for equity markets.

Watching the U.S. data

Signs of continued softening in the U.S. labour market have pulled forward market expectations for a Federal Reserve rate cut to as early as this month. July’s underwhelming jobs report was accompanied by large downward revisions to the prior two months’ figures. At the same time, inflation remains above the Fed’s 2% target, with some indicators suggesting that price pressures could flare up again. The backdrop means Fed policymakers will need to navigate a delicate balancing act between supporting growth and price stability. Growing optimism for monetary easing has helped bolster equity markets since the Fed’s Jackson Hole symposium in late August, making upcoming jobs and inflation data crucial in shaping the outlook for interest rates.

Bond markets

While short-term Treasury yields in the U.S. have fallen on rate cut expectations, long-term yields have risen, resulting in a “steepening” of the yield curve. Several factors have likely contributed to this dynamic, including concerns around the U.S. budget deficit and the Trump administration’s rhetoric that raised questions around central bank independence.

But higher long-term bond yields have been a global phenomenon, with 30-year government bond yields in several major developed nations (U.K., Germany, France, Japan) recently reaching their highest levels in over a decade. A common thread behind the upward pressure on long-term yields is elevated budget deficits, as many governments face increasingly complex fiscal tradeoffs, balancing political priorities, defense spending, and industrial policy for strategically important industries with the need for fiscal restraint to maintain credibility in public finances and investor confidence.

Takeaway

Resilient corporate earnings and optimism over potential Fed rate cuts have helped support global equity markets, allowing them to extend gains despite a tepid economic growth environment. But with September’s historical tendency towards weakness and valuations that appear to reflect an upbeat outlook, we believe “invested, but watchful” remains a sensible posture for portfolios as we continue to monitor economic data, earnings trends and global bond yields.

Thoughts from our Portfolio Advisory Group on global markets and key developments

August 22, 2025 - We discuss the end of earnings season, what we’re seeing with inflation, and how it may impact monetary policy decisions

Despite ample reasons for pessimism this year, the global economy and markets have largely exceeded expectations. This has sharpened attention on corporate financial results and guidance, as investors look for insight on how firms are navigating a more challenging operating environment caused by unpredictable U.S. trade policy, how tariffs are feeding into inflationary pressures in the U.S., and the potential impact on monetary policy. We discuss in more detail below.

A reassuring Q2 earnings season

With the U.S. earnings season now largely complete, results were generally better-than-expected, with the realized earnings growth rate handily surpassing consensus estimates. Notably, the number of earnings estimate upgrades relative to downgrades reached its highest level since late 2021, marking a reversal from earlier cuts prompted by uncertainty over the impact of supply chain disruptions, which to date have proven less severe than initially feared. While analysts have attributed the solid earnings performance to effective tariff-mitigation strategies and a weaker U.S. dollar, they also cautioned that the full effects of tariffs have yet to be felt given the front-loading of goods earlier in the year has likely deferred the impact.

Moreover, the burden of tariffs is unevenly distributed across industries. Some trade-reliant sectors are already feeling the pinch. For instance, major U.S. automakers revealed hefty import duty charges in relation to automobile and metals tariffs, while select retailers have delivered mixed results and warned of potential price hikes once their front-loaded inventories are exhausted. On a more positive note, persistently strong results and constructive guidance from large-cap technology and adjacent companies, key beneficiaries of the AI-related investment cycle, have provided crucial support to the S&P 500’s earnings momentum.

On balance, the earnings outlook remains supportive of equity markets. Consensus estimates for the S&P 500 are pointing to profit growth of around 9% in 2025 and 12% in 2026. Globally, the MSCI All-Country World Index is expected generate earnings growth of 9% in 2025 and 11% in 2026. As we progress through the second half of 2025, markets will continue to home in on corporate guidance for 2026. Most companies offering 2026 guidance are holding projections steady, but management teams continue to emphasize an uncertain environment and are still gauging how tariff impacts may feed through to financial results. As RBC Capital Markets Head of U.S. Equity Strategy Lori Calvasina noted, “we have a long way to go to understanding how the recent changes in trade policy will impact demand and 2026 outlooks.”

U.S. inflation readings flash mixed signals

Elsewhere, markets are closely watching the transmission of tariffs through the economy. The front-loading and inventory buildup at pre-tariff prices have temporarily shielded consumer prices and corporate profit margins. But as these stockpiles unwind, firms are likely to face an uncomfortable decision: absorb the tariffs at the expense of lower margins (which may increase pressure to cut costs elsewhere such as labour) or pass the tariffs onto consumers through price increases (which may dampen demand). Recent U.S. producer price data showed the strongest monthly increase in over a year, suggesting tariffs may be impacting prices further up the supply chain. However, the latest consumer price data was relatively benign. The divergence between consumer and wholesale prices underscores the difficulty in assessing the true trajectory of inflation, a factor that is complicating the outlook for U.S. monetary policy.

All eyes on Jackson Hole

Markets will be attentive to Federal Reserve Chair Jerome Powell’s speech at the annual central bank conference in Jackson Hole, Wyoming. This event has long been a key platform for Fed chairs to potentially provide guidance on the Fed’s thinking around monetary policy. This year, markets will be parsing Powell’s comments for hints about whether the Fed will maintain its “wait-and-see” approach or signal a possible policy shift. A weaker-than-expected jobs reports for July prompted markets to price in a 25-basis point cut at the Fed’s September meeting. But with inflation still above the central bank’s 2% target, policymakers face a tricky task of balancing their dual mandates of maximum employment and stable prices.

What about Canada?

Meanwhile, consumer price pressures in Canada have eased, largely due to the unwinding of the consumer carbon tax back in April. On trade, the USMCA free trade agreement continues to backstop duty free access to the U.S. market for most Canadian exports. The U.S. Census Bureau reported 92% of Canadian exports to the U.S. crossed the border duty free in June―up slightly from 91% in May and 89% in April. The Bank of Canada (BoC) has held its benchmark rate steady at 2.75% for three consecutive meetings since March and RBC Economics expect the BoC is unlikely to cut again in this cycle.

Takeaway

In the U.S., an uptick in producer prices and the prospect of consumer price increases have renewed concerns that trade-policy uncertainty could stoke inflation in the near term. Nevertheless, strong corporate fundamentals alongside upward earnings revisions have continued to provide a foundation for cautious optimism in markets. For portfolios, “invested, but watchful” remains a sensible stance to us as we continue to monitor developments on trade policy and corporate earnings.

Thoughts from our Portfolio Advisory Group on global markets and key developments

August 8, 2025 - We discuss the recent wave of trade and macro developments, alongside key takeaways from the Q2 earnings season to date.

As we’ve highlighted in recent letters, this summer has been far from quiet. Markets remain sensitive to a steady flow of headlines, many of them tied to evolving trade developments, which continue to shape investor sentiment. Meanwhile, the second-quarter earnings season remains in full swing. We’re closely monitoring not just company results, but also forward guidance for signs of how tariff dynamics may be impacting business outlooks heading into the latter parts of 2025 and beyond. We share more insights below.

Q2 earnings

The second quarter earnings season is well underway, with 122 S&P 500 companies reporting this week alone. Overall, results have generally exceeded expectations, helping to lift the projected earnings growth rate for the index. Much of this momentum has been driven by strong performances from several of the “Magnificent 7” large-cap tech companies, along with notable contributions from the Financials sector.

Despite the relatively solid results so far, management commentary has been somewhat more mixed, with some firms striking a cautious tone. Sectoral differences have been shaped by a range of factors, including trade policy, consumer trends, foreign exchange fluctuations and shifting demand patterns. As Federal Reserve Chair Jay Powell recently noted, there’s still “a long way to go” in fully understanding how tariff changes may influence inflation, economic growth and demand, particularly as we look ahead to 2026.

Trade developments

Trade policy developments remain fluid. Over the past two weeks, we’ve seen a combination of tariff escalations and constructive trade agreements. On the escalation front, the U.S. reinstated reciprocal tariffs ranging from 10% to 50% on dozens of countries, marking a pivot toward a more aggressive, country-specific trade approach. For Canada, duties on select Canadian exports into the U.S. were raised from 25% to 35%. However, Canada reaffirmed the USMCA continues to shield the vast majority of its exports and signaled ongoing negotiations. Meanwhile, tensions intensified between the U.S. and India, where the U.S. administration is preparing to impose an additional 25% tariff in response to India’s continued purchases of Russian oil, part of broader efforts to increase pressure on Moscow to resolve the war in Ukraine.

At the same time, the U.S. had announced a series of new bilateral trade agreements with key partners―including the European Union, Japan, and South Korea―that clarified tariff schedules and improved mutual market access. Additionally, ongoing U.S.-China negotiations suggest a potential extension of the current tariff truce is forthcoming, while Mexico also secured a 90-day reprieve from new U.S. tariffs, allowing more time for discussions on border security and trade-related issues. Lastly, the U.S. unveiled plans for a 100% tariff on imported semiconductors―though the impact may be limited in scope, given significant exemptions for companies with existing U.S. operations or plans to invest in U.S. production. Together, these announcements have helped ease some investor concerns that contributed to renewed optimism in global markets.

Macro developments

In the U.S., recent data has weakened the narrative of economic resilience. The July jobs report came in well below expectations, with downward revisions to prior months adding to concerns about a softening labour market. Compounding the picture, a key activity indicator for the U.S. services sector―accounting for roughly two-thirds of the economy―unexpectedly stalled in July. In response, markets are increasingly anticipating a rate cut from the Federal Reserve, potentially as early as next month, after policymakers held rates steady at their most recent meeting in late July.

Closer to home, the Bank of Canda kept its policy rate unchanged at 2.75% for the third consecutive meeting. Policymakers are likely to maintain a cautious stance in the near term, as they navigate a delicate balance between a recent pickup in core inflation measures and signs of softening economic activity, all against a backdrop of persistent global trade uncertainty.

Takeaway

On balance, strong corporate earnings results to date, alongside a series of constructive trade developments, have provided a foundation for cautious optimism. Nevertheless, with equity markets trading near all-time highs and elevated valuations, we remain mindful that expectations have risen meaningfully. While corporate fundamentals remain broadly supportive, this heightened bar of expectations could leave markets relatively more sensitive to negative surprises in the near term.

Should you have any questions, feel free to reach out.

Thoughts from our Portfolio Advisory Group on global markets and key developments

July 11, 2025 - We discuss the recent tariffs and legislation out of the U.S., the impact on Canada, and the market reaction over the last number of weeks.

Despite summer typically being more quiet, the headline-filled nature of 2025 has yet to show signs of slowing. A few notable developments have taken place recently, including the signing of a key piece of U.S. legislation and new tariff rates being proposed. We discuss below.

Recent tariffs and the “One Big Beautiful Bill" developments

After some political maneuvering by the Trump administration, the House of Representatives passed the Senate's altered version of the "BBB" which was subsequently signed into law by the President. In a nutshell, the Bill includes: an extension of Trump's 2017 tax cuts, a temporary end of taxes on overtime work and tips, the cutting of Medicaid and food stamp funding, higher defense and border expenditures, and a roll-back of many clean-energy initiatives. The legislation has become a hot-button political topic with some arguing this will stimulate growth and others voicing concern over the impact to social safety nets and renewable energy. Politicians from both sides of the isle have expressed concerns surrounding the Bill's impact on the federal budget deficit. The nonpartisan Congressional Budget Office projects that the Bill will add around US$3.4 trillion to the fiscal deficit over the next decade.

On the tariff front, there has been a frenzy of "letters" sent by the U.S. to many major trading partners and the deadline previously slated for July 9th has been extended to August 1st. President Trump says there will be no more extensions, but the administration has shown a reluctance to follow through on policies that have generated adverse reactions in bond and equity markets. The new rates announced, so far, have largely tracked those announced in early April. There have also been new tariff threats: an additional 10% tariff against the “BRIC” emerging markets over allegations the group is attempting to weaken the U.S. dollar, a 50% tariff on copper imports, and the teasing of the potential for elevated duties on semiconductors and pharmaceuticals.

What about Canada?

Canada stands at an interesting juncture. The country was a surprising early target in the tariff war, but the U.S. backed off to some extent for a while, or at least shifted priorities to other countries. Talks between Canada and the U.S. have resumed after some brief tensions over Canada’s digital services tax, which Canada subsequently removed, and a deadline of July 21st had been set for the countries to come to some sort of deal. Regardless, Canada was also a “letter” recipient, with a 35% blanket tariff rate now being threatened with that appearing to be a new deadline of August 1st for negotiations. It remains unclear how this will differ from the current state given exemptions for USMCA-compliant goods from broader levies have largely insulated Canadian exports. However, some pockets of the economy are still being greatly affected, particularly those directly impacted by sector-specific duties on metals and vehicles. We will be watching these developments and the new proposed copper duties closely, given the U.S. is the top recipient of Canadian copper exports.

Muted market reaction

Investors may have expected the re-emergence of "Liberation Day" tariff levels and an amalgamation of sector-specific tariffs to lead to a similar market reaction as we saw back in April. Back then, equity market volatility rose sharply. But that has not been the case this time around. Markets have been more resilient in the wake of these significant announcements, likely because they have been through this before and may be questioning the U.S. administration’s ability and willingness to follow through. There is also some confidence that the economic and earnings trajectory has not been unduly impacted by the uncertainty created earlier this year by the tariff threats.

We remain cognizant of downside risks given stock markets are sitting close to highs, leaving them vulnerable to a negative shock or disappointment. Nevertheless, markets may remain resilient until there are more concrete signs that the uncertainty, threats, or tariffs themselves are having some sort of tangible impact on inflation, economic growth, and potentially future corporate earnings. As of now, this hasn't been the case.

Portfolio Advisory Group - Historical Annual Returns

Jan 24, 2025 -  The Canadian Investment Committee has compiled a selection of exhibits that provide context around the historical annual returns for the S&P 500 and S&P/TSX Composite, including: calendar year returns, annual return histograms, historical annual total returns, intra-year drawdowns and equity sector quilt.

The following PowerPoint slides offer a good glimpse into historical returns.  

S&P 500: Historical Annual Returns

S&P/TSX Composite: Historical Annual Returns 

Why asset allocation matters

Investors often get caught up focusing on what sector, fund, or stock could be the next “big thing”. But investors should not lose sight of one of the most important decisions that could impact their long-term investing outcome: their asset mix.

A constant source of debate for investors has been the outlook for global equity markets, the direction of interest rates, which sectors to overweight and underweight, and what funds and stocks may be the winners of tomorrow. Yet investors should step back from the day-to-day nuances of the markets to ensure they have the proper asset allocation for their long-term goals. 

Ultimately, asset allocation is often the primary driver of long-term portfolio risk and returns. This approach to portfolio construction may be particularly relevant after a prolonged period of outperformance in one asset or sub-asset class, when investors may question the need to have anything else in their portfolios. So we’d like to remind investors why appropriate asset allocation matters.

Please click here to read the full article.

The 10-Minute Take

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