SIC Multi Asset Institutional Composite
|June 2019||Year to Date|
* 5% T Bills, 35% Canadian Bond Composite, 20% S&P TSX Composite TRI, 20% S&P 500 C$ TRI, 20% MSCI EAFE (Net) C$ TRI
The US Federal Reserve came to the rescue in June. Global equities were propelled higher as expectations for lower interest rates bolstered investor confidence after May’s sell-off. The MSCI World Index gained 3.1% in June led, once again, by US equities which added 3.6%. Canadian and International equities each added 2.5% for the month. The SIC Multi Asset Institutional Composite marginally outperformed the benchmark as a result of our emphasis on economically sensitive equities.
Interestingly, the 2.5% monthly gain in the S&P TSX Composite was led by base and precious metal mining stocks which offset a decline in the energy sector. We believe bargain hunting in natural resource stocks may result in their outperformance in the second half of 2019, especially if the US dollar shows any weakness.
Trading volumes through the summer months are traditionally light. As a result, we expect that market volatility will be a key feature this summer as investor sentiment reacts to US/China trade talks and further directions from the major Central Banks.