By Mackenzie Investments | August 11, 2021
Brent Joyce, Investment Strategist, and Justin Truong, Manager, Investment Strategy

“While ‘peak everything’ may be near, the size of the mountain matters,” say Brent Joyce and Justin Truong of Mackenzie Investments. In their recently published mid-year outlook, the pair see growth in economic activity and earnings continuing through the year – just at a more stable pace: “Markets prefer positive and growing data – but they can live with stabilizing metrics. It’s just that stability generally doesn’t drive the kinds of double-digit appreciation in stock prices we have seen – it likely leads to more modest gains.”

Their base case scenario is one where earnings growth delivers with COVID-19 being kept at bay. However, after a year that was anything but typical, further setbacks could make for a bumpy ride. The prospect of future volatility means balanced investors shouldn’t regret their fixed income exposure – they believe the magnitude of the upside we’ve seen in equities markets isn’t likely to be repeated.

Read the full report for detailed insights on the capital markets and asset mix recommendations for the remainder of 2021.

The views expressed in this commentary are those of this fund manager as at the date of publication and are subject to change without notice. This commentary is presented only as a general source of information and is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide tax or legal advice.

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