Natixis Canada Blog

Month: November 2015


US Equities in October: Markets Rebound from Recent Selloff

Donald Nesbitt & Mikhail Alkhazov – Ziegler Capital Management

Ziegler Photos

U.S. equity markets rebounded convincingly in October from the significant sell off in August and September. The market advanced steadily throughout the month on what appeared to be no significant new events, but it seemed as though investors’ trepidation over a potential for collapse in China’s economy faded and that they have acclimated themselves to the low growth economic environment. The threat of a federal shutdown over budget and debt ceiling issues was staved off and the Fed also passed on making any changes to its current policy.

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US Equities Rebound to Best Monthly Gain in 4 years

Dennis Ruhl, CFA J.P. Morgan Asset Management

After suffering significant losses in the third quarter, U.S. equities rebounded in October as the S&P 500 Index had its best monthly gain since October of 2011. Developments in China have been on the forefront of investors’ minds. Stabilization in China’s foreign currency (FX) reserves as well as additional monetary easing by the People’s Bank of China (PBoC) helped improve market sentiment. Hints of more accommodative monetary policy by European Central Bank (ECB) President Mario Draghi and the latest statement from the Federal Open Market Committee (FOMC) were also viewed positively. Large-cap stocks as represented by the S&P 500 advanced 8.4%*, outperforming small-cap stocks measured by the Russell 2000 Index, which gained 5.6%*. The S&P 500 now stands with a year-to-date gain of 2.7%* while the Russell 2000 Index – lost 2.5%*.

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Finally, some relief for preferred share investors

Jeff Herold
Jeff Herold, J. Zechner Associates, Lead Fixed Income Manager

After falling to multi-year lows in the first two weeks of October, the preferred share market rebounded strongly over the balance of the month. From the mid-month lows, the S&P/TSX Preferred Share index surged over 10%, resulting in a monthly return of +5.74%. The turnaround appeared to be driven by bargain-hunting institutions as yields had risen to extraordinarily attractive levels relative to bond alternatives.

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Bond Markets in November: Waiting for the Fed’s Move

 

Jeff Herold
Jeff Herold, J. Zechner Associates, PM of NexGen Canadian Bond Funds

North American bond markets during November were focused on the possibility that the U.S. central bank, the Federal Reserve, would begin raising interest rates at its next meeting on December 16th. With several Fed speakers, including its Chair, Janet Yellen, hinting that the first rate increase in a decade might come in December, investors evaluated each successive bit of economic data as either increasing or decreasing the likelihood of the Fed acting the following month.

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Q3 2015 Update – Applying the Galibier Process Through Market Volatility

Joseph Sirdevan & Scott Connell – Galibier Capital Management Ltd.

Joe SirdevanSCOTT CONNELL

 

 

 

 

 

 

The third quarter of 2015 was a challenging one for investors as concerns about the pace of economic recovery in the western world were intensified by evidence of a significant slowdown in China. In addition, commodity prices weakened sharply due to supply and demand imbalances which, coupled with a strong US$, had a further damaging effect on resource intensive markets such as Canada. As always, our investment team was applying the Galibier process to identify companies that meet our criteria and to develop investment theses and new investment opportunities.

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