Key takeaways:
Increased International equities, decreased US equities.
Tactical Update - January 25, 2021
European markets have materially lagged US equities over the past year due to multiple reasons including index composition and Brexit uncertainties. This has resulted in Europe trading at a near record discount to the US. Given its cyclical nature, the Japanese market has performed well but continues to provide exposure to a rebounding global economy.
Key takeaways:
Increased US equities, decreased cash
Tactical Update - February 26, 2020
Global equities retreated sharply over the last week as investors digested news about the spread of the coronavirus to countries beyond China. The broadly based S&P 500 Index is now down over 7% from its recent high.
Key takeaways:
Increased U.S. and international equities, decreased Canadian small cap equities
Tactical Update - October 25, 2019
The record equity bull market (now well into its 11th year) continues to grind higher despite prevailing headwinds. Given its extended run and a softening of various global economic growth indicators, we believe it prudent to implement some tactical asset allocation adjustments to reflect these shifting fundamentals.
Key takeaways:
Emblem Portfolios - Canadian: Tactically reduced cash, increased bonds
Tactical Update - July 22, 2019
Events have moved very quickly in bond markets. In the span of about seven months, the U.S. Federal Reserve (the “Fed”) has gone from increasing interest rates, to holding interest rates steady, and now market expectations are for multiple rate reductions over the remainder of the year.
Key takeaways:
Emblem Portfolios - Canadian: Increased U.S. equities, decreased international equities.
Emblem GIF Portfolios - Global: Increased U.S. equities, proceeds from bonds and/or accumulated cash
Equity markets across the globe have experienced very strong moves since their December 2018 lows. At yesterday’s close, the S&P/TSX Composite has gained 20%, 21% for the S&P 500, and 13% for the MSCI EAFE index. With such strong moves in a compressed period of time, any improvement in fundamentals has not been able to keep pace.
Key takeaways: Tactically increased U.S. and international equities, reduced cash. Remain overweight in equities and underweight in fixed income.
The month of October historically has been one of the most volatile months for the stock market, and this year has turned out to be no different.
Key takeaways: Tactically increased international equities and decreased Canadian equities. Remain overweight in equities and underweight in fixed income.
After starting the year with strength in the first few weeks of 2018, international equities were caught up in a period of global equity market volatility over the following weeks. Unlike the U.S. and Canadian markets, international markets have yet to fully recover from that volatility.
Increased global equities, reduced cash
Tactical Update - March 1, 2018
Volatility affords opportunity.
Equity market volatility came back with a vengeance over the past month, following a year-long stretch of historically low volatility. Simmering concerns over higher interest rates boiled over early in February following the release of strong U.S. wage growth data.
Increased Canadian Equities, Decreased U.S. Equities
In our last tactical update, we cited the market’s overly optimistic view towards U.S. equities. This resulted in decreased U.S. equity targets in the Emblem Portfolios, and increased targets towards Canadian equities and fixed income. While it did take some time to begin unfolding, U.S. equities did initiate a slight correction, with the S&P 500 declining 0.7% since March 1st. Over the same period, the S&P/TSX Composite gained 1.9%.
