Reflections on the Stock Market Correction

February 8, 2018 saw a 1000+ point loss on the Dow Jones Industrial Average1 (-4.15%), along with a 100+ point loss (-3.75%) for the S&P® 500 Index.2This downturn officially put the US stock market in correction territory – typically defined as a 10% or greater sell-off from its peak. Since their respective peaks on December 26,…

End of an Era? Looking at Where Bonds May Go From Here

End of the Bull Market for Bonds? Exploring the potential bond portfolio implications of higher interest rates in an aging bull market. So Good for So Long Do investors realize how good they’ve had it over the last 8+ years? On the obvious side, the length and strength of the equity bull market has been…

Market Outlook 2018: Assessing Potential Risks and Opportunities

Market Outlook 2018: Assessing Potential Risks and Opportunities Natixis Chief Market Strategist David Lafferty shares some thoughts on what investors might expect in the year ahead.

Canadian Preferred Shares Mixed in December From Illiquid Conditions

Preferred share prices declined at the start of December, but ground back toward unchanged levels in the illiquid conditions in the second half of the month. The early weakness was due to new issue supply, as well as selling related to unwinding of structured note hedges. The S&P/TSX Preferred Share Index returned +0.05% in December.

The Outlook for 2018 Investment Outlooks

DAVID LAFFERTY, CFA® Senior Vice President and Chief Market Strategist Natixis Investment Managers — U.S. Distribution It’s that time of year again, when everyone releases their year-end investment outlooks and predictions. In fact, the only thing that will show up in your inbox more frequently than investment outlooks will be articles and blogs about how…

Good Investor Demand Pushed Preferred Share Prices Higher and Yields Lower in November

Following several weeks without any issues, two new ones came in late November, but were insufficient to satisfy investors’ appetites. The anticipated unwinding of structured note hedges linked to passive preferred share ETFs continued, but was offset by demand for actively managed alternatives. The S&P/TSX Preferred Share Index returned 0.70% in November.

It’s the End of the World as They Know It. And They Feel Fine.

After a decade of low interest rates, low volatility, and high investment returns, professional investors and institutional decision makers foresee plenty of risk on the horizon including geopolitical uncertainty, potential market spikes and asset bubbles, and the specter of rising interest rates. In order to be better positioned for a changing market, respondents in the…

Institutional Investor Return Expectations Could Be Overinflated

DAVID W. ROLLEY, CFA® Vice President and Portfolio Manager Loomis, Sayles & Company There is a striking disconnect between concerns about current asset valuations and a very complacent view of future returns among institutional investors surveyed by Natixis. A changing rate environment Institutions generally regarded interest rates and bond yields as “low”. This is not…

Tax Efficient Investing: Downsizing

Tax-Efficient Investing: Downsizing Downsizing your home can be one approach to help fund your retirement. Learn the most tax-efficient way to keep more of that income in retirement. Downsizing your home can be one approach to help fund your retirement. Robert Handelman, Vice President of Tax & Wealth, explains how to make the most out…

Low-Volatility Equity Strategy in an Aging Bull Market

CLARICE AVERY, CFA® Investment Strategist Natixis Investment Managers – U.S. Distribution As the equity bull market lumbers through its ninth year, the chance of larger pullbacks in stocks is increasing. Equity valuations are stretched, while fixed income yields are still low and set to rise. And with the Federal Reserve well down the path of…

Millennials Are Not Who You Think They Are

Coming of age in a period of economic uncertainty, Millennials have been stereotyped as recent college grads who can’t find meaningful work. But the truth about the 2 billion individuals globally born between 1980 and 2000 is something altogether different. Many are no longer “kids.” The oldest members turn 37 years old this year. They’re…

Good Investor Demand Push Preferred Share Prices Higher in October

The preferred share market enjoyed strong returns in October. A lack of new issues, concerns about lower bank issuance, and good investor demand combined to push preferred share prices higher. Some selling late in the month, related to ETF redemptions and reduced institutional interest, caused prices to decline slightly, thereby halting the rally. The S&P/TSX…

Will Passive Investing Save Active Investing? Indexing Raises the Bar

DAVID LAFFERTY, CFA® Senior Vice President and Chief Market Strategist Natixis Investment Managers — U.S. Distribution This month we examine the ever-popular active vs. passive debate and explore how the growth in indexing is forcing active managers to up their game – a positive development for investors of all stripes. Active fund managers face strong…

Listen Up: Hearing Investor Needs in the Age of Noise

AL BARBARO Managing Director and Senior VP of the Durable Portfolio Construction® Research Center Natixis Investment Managers — US Distribution Investors today are inundated with information and expressing frustration that amid all the breaking market news, opinions, and trendspotting, nobody is hearing their questions and concerns. Of the 170 individual investors we surveyed in Canada,…

Investment Virtues for Trying Times

DAVID LAFFERTY, CFA® Senior Vice President and Chief Market Strategist Natixis Investment Managers — U.S. Distribution Capital markets can be tough to figure out, but today’s investment landscape is particularly problematic. Risk assets like stocks and high yield bonds continue to perform well, but stretched valuations are making investors skittish. In addition, geopolitical tensions are…

Why So Quiet? Three Drivers of Low Stock Market Volatility

D. David Jilek, RMA, CAIA® Vice President and Chief Investment Strategist Gateway Investment Advisers, LLC Steady economic expansion and strong corporate profit growth, along with low price correlation across individual stocks, have driven realized stock market volatility to record lows. In addition to these shorter-term drivers, three long-term factors may also be contributing to this…

4 Reasons Why the VIX May Double in the Next Year

By: Brett Olsen – Nicholas J. Elward There has been much discussion lately about how stock market volatility is at near historic lows. The Chicago Board Options Exchange Volatility Index® (or VIX)1, a measure of implied or future volatility, is at a level of roughly 11 as of October 24, 2017. If one looks at the…

Tax Efficient Investing: Income Splitting

Tax Efficient Investing: Income Splitting Learn how splitting income between family members can be an effective strategy in maximizing your portfolio’s after-tax return. Robert Handelman, Vice President of Tax & Wealth, explains how shifting assets within a family from a high-income earner to a low-income earner can maximize an investor’s after-tax return by reducing the…

The Risk Management Challenge

Managing clients and their emotions is no easy task. Investors are looking for nearly double-digit returns, but say if forced to choose they would take safety over performance. Balancing risk and return is a key focus for client conversations. Our latest Global Survey of Individual Investors found that understanding risk is a major area of…

Preferred Share Market Enjoyed a Strong Month in September as Investors Focused on the Favourable Economic Conditions

The preferred share market enjoyed a strong month in September even as other fixed income instruments, such as bonds, struggled. Preferred share investors focussed on the favourable economic conditions and good corporate creditworthiness, and ignored geopolitical events and hurricanes. A somewhat surprising interest rate increase by the Bank of Canada (BOC) had positive ripple effects…