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Financial markets at a glance - June 30, 2022

Investment Views, Investments

Posted by Empire Life Investments

Aug 10, 2022 5:00:48 PM

Empire Life Investments
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2021-Budget-infographic-ELSymbol
FINANCIAL MARKETS
AT A GLANCE

 

JUNE 30, 2022

Both Canadian and U.S. equities were negative over the quarter. Yields were mixed across the curve. Corporate bonds outperformed government bonds, and subsequently shorter term bonds outperformed long term bonds. Here are the financial markets at a glance.

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CANADIAN EQUITIES
 
US EQUITIES
 
 
Sector
10 of the 11 Canadian equity sectors ended the quarter in negative territory. Here are the best and worst performing sectors relative to last quarter.
 
Sector
All of the 11 U.S. equity sectors ended the quarter in negative territory. Here are the best and worst performing sectors relative to last quarter.
 
WORST PERFORMERS
BEST PERFORMERS

Energy

Energy
 

Utilities

Utilities

Consumer Staples

Consumer
Staples
3.5% Down arrow
-3.5% Down arrow
-5.0% Down arrow

Healthcare

Healthcare

Information Technology

Information
Technology

Materials

Materials
-45.6% Down arrow
-24.0% Down arrow
-23.6% Down arrow
 

Consumer Staples

Consumer
Staples

Utilities

Utilities
-1.5% Up arrow
-2.0% Down arrow

Consumer Discretionary-nobg-sm

Consumer
Discretionary
Communication Services
Communication
Services
-23.7% Down arrow
-18.1% Down arrow
 
 
Company size performance comparison 
Large companies modestly outperformed medium and small-sized companies, but all were negative over the quarter.
 
Company size performance comparison 
Small, medium and large companies were negative over the quarter, with medium companies underperforming the most.
 
 
Large Corporations Down arrow
Medium BusinessSmall Business Down arrow

Large
Companies

Medium & Small 
Companies
 
Medium Business  Down arrow
Large CorporationsSmall Business Down arrow

Medium
Companies

Large & Small
Companies
 
 
What’s working/What’s not working
  • From a style perspective, both value and growth were negative, but value outperformed growth and the index.
  • From a factor perspective, dividends and low volatility were the best performers while quality and momentum trailed, but all factors were negative.
 
What’s working/What’s not working
  • Value and growth were both negative, but value outperformed both the index and growth in the quarter.
  • All factors were negative this quarter, but dividends and low volatility outperformed the index.
 

 

 
GLOBAL EQUITIES
 
FIXED INCOME
 
 
 
Regional 
 
INV-3005-GlobalEquities-EN-Q2-2022
Company size performance comparison 
Global small and large companies were negative over the quarter with small companies underperforming the most.
Small Business Down arrow Large Corporations Down arrow
Small Companies Large Companies
What’s working/What’s not working
  • From a style perspective, value outperformed growth and the MSCI World Index. However, both ended the quarter in negative territory.
  • Dividends and low volatility were the factors that outperformed the index, but all factors and the index were negative.
 
Yields were mixed across the curve this quarter, with yields in the short, middle and long end moving higher as interest rates and inflation rose. 
Relative bond performance 
Long-term Bonds Down arrow Short-term Bonds Up arrow
Long-term Bonds Short-term Bonds
Government Down arrow Corporate Up arrow
Government Corporate
 
   Bond yield 
Bond Yield image@2x

 



Bond yields were up with both shorter and longer date bond yields increasing over the quarter.
Yield on the Canada 2-year rose from 2.27% to 3.10%.
Canada 5-year rose from 2.39% to 3.10%.
Canada 10-year rose from 2.40% to 3.23%.
Canada long bond rose from 2.37% to 3.14%.
 
     
     
     
     
     

 


Source: Morningstar Research Inc. as of June 30, 2022. © 2022 Morningstar Research Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. 

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This article includes forward-looking information that is based on the opinions and views of Empire Life as of the date stated and is subject to change without notice. The information contained herein is for general purposes only and is not intended to be comprehensive investment advice. We strongly recommend that investors seek professional advice prior to making any investment decisions. Empire Life and its affiliates assume no responsibility for any reliance on or misuse or omissions of the information contained herein.

 

June 2022

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