The Market & Economic Environment
After four straight monthly gains, the TSX Composite index fell 1.0% in August. The decline was led by steep losses in the commodity sectors, as the Materials and Energy groups tumbled 8.2% and 4.0% respectively, while consumer sectors also traded lower over the month.
Advancers were led by the Health Care sector, which surged 28.4% following runaway gains in marijuana stocks after Constellation Brands announced it was investing an additional $5 billion in Canopy Growth to increase its ownership stake.
Other sectors with positive returns in August included Information Technology (+5.1%) and REITs (+1.9%).
The Financials sector rose 1.1% after Canadian banks reported strong earnings in their fiscal third quarter. U.S. equity indices added to their gains with another robust performance in August as technology stocks continued their ascent, with Apple becoming the first US company to reach $1 trillion in market capitalization. The Dow Jones rose 2.2%, the S&P 500 gained 3.0% and the Nasdaq Composite surged 5.7% as it traded above 8,000 for the first time. (Source: FactSet)
Our Strategy: Market developments in August reinforce our view that a defensive positioning is warranted for portfolios in the current environment.
In addition to the diplomatic spat between Saudi Arabia and Canada at the beginning of the month, the U.S.-Mexico trade pact that excluded Canada and a court ruling halting the Trans Mountain pipeline expansion in the last week of August highlight the potential risks to the export-reliant Canadian economy.
Trade issues are expected to dominate headlines and contribute to market volatility in September, as NAFTA negotiations between Canada and the U.S. continue, while the risks of an escalating trade war between the U.S and China rise. The Portfolio Management Team (PMT) has built up a cash cushion to take advantage of buying opportunities that may arise as we head into the historically most volatile calendar period for equities.
This information has been prepared by Luft Financial. Opinions expressed in this article are those of Luft Financial only and do not necessarily reflect those of iA Private Wealth. Furthermore, this does not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors.
How do we elevate your wealth?
It begins with understanding your needs and creating a comprehensive and tailored financial plan to help reduce tax, manage risk and grow your portfolio over the long term. Learn more about how we help you achieve financial security and peace of mind.
News & commentary
February 2023 Portfolio Management Team Update
February 2023 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Portfolio Manager, iA Private Wealth February 21, 2023 Market Review Global equities rebounded in January from the December selloff, getting 2023 off to a strong start, as investors grew increasingly confident that central banks would ease up on their interest-rate hikes. The TSX surged […]Read more
January 2023 Portfolio Management Team Update
January 2023 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM®, Portfolio Manager, iA Private Wealth January 26, 2023 Market Review Global equities finished 2022 on a dismal note, capping an exceptionally challenging year as central banks around the world boosted interest rates sharply to combat the threat posed by surging inflation. The spike in […]Read more
2022 IAPW Tax Document Distribution Dates
2022 IAPW Tax Document Distribution Dates There are different mailing dates for different account types. Please click on the link below to view the expected delivery for both mail and online tax slips and reports. 2022 Important Yearend Information – Tax Document Distribution DatesRead more