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Financial markets at a glance - September 30, 2022

Investment Views, Investments

Posted by Empire Life Investments

Nov 8, 2022 11:16:49 AM

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

 

SEPTEMBER 30, 2022

Canadian equities were mostly negative, while U.S. equities were mixed over the quarter. Yields rose through the quarter. Government bonds outperformed corporate bonds, and short term bonds outpaced long term bonds. Here are the financial markets at a glance.

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CANADIAN EQUITIES
 
U.S. EQUITIES
 
 
Sector
7 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
5 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

Industrial

Industrials
 

Consumer Discretionary-nobg-sm

Consumer
Discretionary

Materials

Materials
4.3% Up arrow
4.2% Up arrow
2.5% Up arrow

Communication Services

Communication
Services

RealEstate

Real Estate

Healthcare

Health Care
-8.7% Up arrow
-6.4% Up arrow
-6.2% Up arrow
 

Consumer Discretionary-nobg-sm

Consumer
Discretionary

Energy

Energy
11.2% Up arrow
9.0% Up arrow

Communication Services

Communication
Services

RealEstate

Real Estate
-7.0% Up arrow
-5.2% Up arrow
 
 
Company size performance comparison 
Medium sized companies modestly outperformed small companies, while large companies were negative over the quarter.
 
Company size performance comparison 
Small and medium companies were positive, with small companies outperforming the most. Large companies were flat.
 
 
Medium Business Small Business Up arrow
Large Corporations Down arrow

Medium & Small
Companies

Large 
Companies
 
 Small Business Up arrow
Medium Business Large Corporations Up arrow

Small
Companies

Medium & Large
Companies
 
 
What’s working/What’s not working
  • From a style perspective, growth was positive, outperforming both value and the index.
  • All factors and the index were negative this quarter, but quality and momentum outperformed the index while dividends trailed.
 
What’s working/What’s not working
  • Growth and value were both positive, with growth outperforming the index in the quarter.
  • Factors were mixed this quarter, with momentum outperforming the index while dividends trailed.
 

 

 
GLOBAL EQUITIES
 
FIXED INCOME
 
 
 
Regional
 
INV-3005-GlobalEquities-EN-Q3-2022
Company size performance comparison 
Global large companies were flat over the quarter, while small companies were negative.
Large Corporations Up arrow Small Business Down arrow
Large Companies Small Companies
What’s working/What’s not working
  • From a style perspective, growth ended the quarter positive, outperforming value and the MSCI World Index.
  • Momentum was the factor that outperformed the index, while other factors were negative, with dividends underperforming the most.
 
Yields rose this quarter, with short term bond yields rising more than long term yields. 
Relative bond performance 
Long-term Bonds Down arrow Short-term Bonds Up arrow
Long-term Bonds Short-term Bonds
Government Up arrow Corporate Down 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 3.10% to 3.79%.
Canada 5-year rose from 3.10% to 3.32%.
Canada 10-year fell from 3.23% to 3.16%.
Canada long bond fell from 3.14% to 3.09%.
 
     
     
     
     
     

 


Source: Morningstar Research Inc. as of September 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.

 

September 2022

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