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Financial markets at a glance - September 30, 2021

Investment Views, Investments

Posted by Empire Life Investments

Nov 8, 2021 9:00:00 AM

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

 

SEPTEMBER 30, 2021

Canadian equity sectors were mixed while U.S. equity sectors were generally positive last quarter. We saw
a steepening of the yield curve. As a result, government bonds trailed corporate bonds, while short term
bonds outperformed long term bonds. Here are the financial markets at a glance.

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

Consumer Staples

Consumer
Staples

Energy

Energy

Industrial

Industrials
4.2% Up arrow
4.0% Up arrow
3.5% Up arrow

Materials

Materials

Consumer Discretionary-nobg

Consumer
Discretionary

Healthcare

Healthcare
-5.6% Down arrow
-5.9% Down arrow
-20.3% Down arrow
 

Financials

Financials

Utilities

Utilities
5.1% Up arrow
4.1% Up arrow

Materials

Materials

Industrial

Industrials
-1.3% Down arrow
-2.0% Down arrow
 
 
Company size
Small companies underperformed medium and
large-sized companies.
 
Company size
Small and medium-sized companies underperformed large companies.
 
 
Small Business  Down arrow
Medium Business Large Corporations Up arrow
Small Companies Large & Medium
Companies
 
Small Business Medium Business Down arrow
Large Corporations Up arrow
Small & Medium
Companies
Large
Companies
 
 
What’s working/What’s not working
  • From a style perspective, growth ended the quarter in negative territory with value coming in
    slightly above the index.
  • Dividends were the big winner this quarter, with momentum and quality trailing.
 
What’s working/What’s not working
  • Growth continues to lead this quarter, outperforming the S&P 500 Index.
  • Momentum was the only factor to outperform the broader market, with dividends being the weakest over the quarter, but still positive.
 

 

 
GLOBAL EQUITIES
 
FIXED INCOME
 
 
 
Regional
 
World Map with pins showing: Canadian Equities 0.2%; U.S. Equities 2.9%; Emerging Markets -5.9%; European Equities 0.8%; Asian Equities 4.0%, Japanese Equities
Company size
Global small companies performed well but were
still outpaced by large companies.
Large Corporations Up arrow Small Business Down arrow
Large
Companies
Small
Companies

What’s working/What’s not working
  • From a style perspective, growth outperformed value and the MSCI World Index.
  • Momentum and quality were the factors that outperformed the index, and while positive dividends underperformed.
 
We saw a steepening of the yield curve this quarter, with yields in the middle and long end moving higher.
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 image Bond yields were up this quarter.
Yield on the Canada 2-year rose from 0.45% to 0.53%.
Canada 5-year rose from 0.97% to 1.11%.
Canada 10-year rose from 1.39% to 1.51%.
Canada long bond rose from 1.84% to 1.98%.
 
     
     
     
     
     

 


Source: Morningstar Research Inc., as of September 30, 2021

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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.

 

November 2021

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