Insurance, Investments and Group Benefits

The Fourth Industrial Revolution may be a watershed moment in human history, eclipsing the transformative power of its predecessors through the fusion of physical, digital, and biological spheres. As we witness the integration of groundbreaking technologies like AI, robotics, IoT, blockchain, and biotechnology, the investment landscape presents a wealth of opportunities that mirror the massive economic shifts of past revolutions.

The “Magnificent 7” refers to a group of leading tech companies — including Apple, Microsoft, Amazon, Alphabet (Google), Meta (Facebook), Tesla, and Nvidia — that have shown exceptional growth and market performance. While there may have been doubts that the run would continue after the massive returns over the last decade, here are several reasons why we believe these companies will continue to perform strongly into the next decade.

Dean is a single Canadian in his twenties looking forward to buying his first home. He’s planning to increase his home savings as his income grows over time. Dean’s advisor recommends a First Home Savings Account (FHSA) because it will give Dean up to 15 years to save, which suits his budget and time frame. 

Paul Holba, Senior Vice-President and CIO of Empire Life Investments Inc. discusses some of the key themes the investment team will monitor as we head into the second half of 2024.

Amina and Sanjay are a young Canadian couple looking forward to buying their first home. They both have satisfying jobs and are financially savvy. Through Amina’s grandfather they were introduced to an advisor who told them about the First Home Savings Account (FHSA), and they think it’s a good way to save for a home. 

An index fund is an investment fund that aims to provide returns similar to those of market benchmark. This is generally done by investing in the same securities (or a representative sample) as the target benchmark. ­

Although it can be tempting to put your investment goals aside to chase these returns, beware of FOMO, which can introduce an unreasonable level of risk in your portfolio. 

Market Implications of the Conflict in the Middle East

Tensions in the Middle East have escalated following the attack on Israel on October 7th by Hamas militants from the neighbouring Gaza Strip. The incursion sparked international backlash, and Israel announced a complete siege of Gaza on October 9th. This conflict has led to a considerable death toll on both sides, a hostage crisis involving over 200 Israeli and international citizens and a growing humanitarian crisis in Gaza. 

Understanding the differences and similarities 

Markets move in different directions at different times, generally called cycles. Different market cycles tend to favour one investment style over another. Understanding how growth and value investment styles differ and where they can work together will help demonstrate how they can both play an integral role in your equity portfolio construction.

Recently, we sat down with SVP and CIO, Paul Holba to get his thoughts on the events that have impacted markets year to date, and where the investment team sees opportunity going forward. In this video, Paul shares:

• How almost 73% S&P500’s returns were attributed to the performance of a handful of companies known as the “Magnificent Seven Stocks”.
• The impacts of the aggressive interest rate hikes by Central banks, what investors can expect and how it could affect their portfolios.
• How staying true to an active management strategy may be instrumental in preserving wealth during a global economic slowdown.