Canadian Markets Keep Losing to the S&P 500

Canada’s equity markets aren’t just underperforming the S&P 500—they’re structurally disadvantaged. The gap in returns is widening, driven by fundamental weaknesses in Canada’s economic makeup, sector concentration, and sluggish productivity growth.

The 5% Myth: Why It’s Yield Volatility, Not Yield Levels, That Moves Markets

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.

Unhedged Wins: Currency Volatility Has Boosted S&P 500 Returns for Canadians

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.

Market Volatility Meets Dispersion: Insights from Breadth in S&P 500 Returns

The S&P 500 Dispersion is signaling a notable shift in market dynamics. While broader participation initially benefits equal-weighted strategies, high dispersion increasingly signals outperformance of market-cap-weighted indices.

Rising Bond Yields Highlight Mixed Market Confidence in UK Leadership

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.

S&P 500: Market Insights and Sector Performance

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.