By C WorldWide Asset Management | Sept. 15, 2022
Many short-term factors are straining equities, from rising inflation and bond yields to the war at Europe’s doorstep. It can be difficult for investors to see beyond these challenges. They might narrow their time horizon as market volatility shakes their confidence in “growth stocks”. In this article, C WorldWide Asset Management points to rising interest rates as the primary reason for declining equity markets. For growth stocks in particular, speculative investors are reducing leveraged investments (those using borrowed capital) in response to volatility, adding to the downward pressure.
The C WorldWide team argues that central banks are limited in how long they can maintain their existing tight monetary policies. This will ease the pressure on equity markets, so long as companies don’t significantly adjust their earnings forecasts. To help incorporate C WorldWide’s long-term, thematic investing approach into client portfolios, consider the Canada Life Pathways International Concentrated Equity Fund. Read on for their view on why the patient investor is likely to be rewarded for looking beyond the “Valley of Sorrows.”
The views expressed in this commentary are those of this investment 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.
This fund is available through a segregated funds policy issued by Canada Life or as a mutual fund managed by Canada Life Investment Management Ltd. offered exclusively through Quadrus Investment Services Ltd., IPC Investment Corporation and IPC Securities Corporation. Commissions, trailing commissions, management fees, and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. A description of the key features of the segregated fund policy is contained in the information folder. Any amount allocated to a segregated fund is invested at the risk of the policyowner and may increase or decrease in value.
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