Unhedged exposure to the S&P 500 has consistently outperformed CAD-hedged investments, particularly since 2019, thanks to trade uncertainty, tariff risks, and Canadian dollar weakness. This trend shows no signs of slowing.

The obsession with specific yield levels—whether 4% or 5%—is misplaced. It’s not where yields are, but how fast they move that unsettles equity markets.

The UK’s bond market is sending a clear signal: confidence in fiscal and economic policy remains fragile. Under Prime Minister Keir Starmer, 30-Year bond yields have risen significantly above the levels seen during Liz Truss’s turbulent tenure.

Investor sentiment remains robust, with P/E ratios hitting multi-quarter highs in Q3 2024. Operating Earnings P/E and Reported Earnings P/E are both at multi-quarter highs.