SIC Multi Asset Institutional Composite

  July 2019 Year to Date
SIC Institutional 0.0% 10.0%
Benchmark* 0.4% 10.4%

* 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 S&P 500 rose 1.9% in Canadian dollar terms during the month of July – once again powered by Mega Cap US Technology and Communication Services stocks. Conversely, global equity indices excluding the US declined by 0.7% for the month.  As promised, the US Federal Reserve came through on the final day of the month with a quarter point cut in administered interest rates.  However, lofty stock valuations, continued narrow leadership and global trade concerns overwhelmed the positive impact of easier monetary policy and decent Q2 corporate earnings sending daily indices down as investors “sold the news”.  For the month and on a year to date basis, we were marginally below the benchmark but still in the ballpark.

This report is delayed by a few days because of the Canadian August long weekend.  Since month end, the President has, once again, panicked markets with his belligerent stance on Chinese tariffs prompting fears of global recession from a trade war.  Bond markets have rallied sharply, and global equities have sagged, especially trade sensitive regions (Europe) and cyclical industries (materials and capital goods).  We continue to believe that Trump’s trade threats are an amateurish negotiating ploy that will likely be reversed at the drop of a hat.  Consequently, we remain focused on attractively priced international markets.      

Terry Shaunessy
James Garcelon