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.
Fiscal stimulus remains an upside risk to growth in both Canada and the U.S.. Government bonds remain attractive heading into the second half of the year. Corporate bond holders are not being compensated as much for taking on corporate credit risk, with spreads at near 20-year lows, although all-in yields look attractive.
Europe has benefited from falling inflation and positive GDP revisions. Wage increases and improved corporate governance standards are among some of the reasons we maintain a positive view of Japan heading into the second half of the year. Chinese equities maintain attractive valuations.
Market sentiment now indicates that rate cuts will not occur until the third quarter of 2024. Despite signs of strength, the direction of the economy and the likelihood of a recession remain uncertain. Relations between the U.S. and China are expected to remain strained regardless of the U.S. election outcome.
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.
Paul Holba, on location in Indonesia, discusses Jakarta’s growing economy and the promising future of investing in emerging markets across Asia.
Next-gen computing and vehicle electrification are driving greater demand for electricity. Nuclear may be a source to help meet it; find out how in our latest Off the Cuff video with Ashley Misquitta, CFA, Senior Portfolio Manager and Investment Strategist.
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.
Helpful Tips, Investments, Personal Finance
Canadians saving for their first home have another option—the First Home Savings Account (FHSA)—a registered plan that allows for tax deductible contributions along with tax-free growth and withdrawals¹ to buy or build your first home.2
