Market Insight

The Bell Has Been Rung

Last week we wrote a piece titled “Hey Equity Markets, Bond Yields Toll for Thee.” Well, bond yields tolled alright, and equity markets found their bell rung in terms of handling rising bond yields. The U.S. ten-year topped out twice last week at precisely 2.88%. The S&P 500 declined 5.2% and the SP/TSX Composite fell 5.4% respectively with both indices falling into correction territory (10%+) from their highs in January. Welcome to the first correction in 722 days, one of the longer streaks ever without a significant pullback. After Friday’s late day bounce equity markets closed the week just under -10% from their respective peaks quickly wiping out months of gains.

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Market Insight

Hey Equity Markets, Bond Yields toll for thee

Well that accelerated quickly.  Higher bond yields have sent global equities abruptly lower with more to come today. After so many years of unprecedented monetary policy and very low yields, the sensitivity to higher yields should not be underestimated. In this edition of Ethos we share our long term view that higher bond yields could be the trigger that ends this current bull market phase of the cycle.  Given the preponderance of our market cycle indicators that remain positive, we don’t think this is the start of the end and will likely be a buying opportunity.  But it may be a sampler of things to come in the quarters or years ahead as the world weens itself off super low yields.

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Market Insight

Growth vs Value & Your Age

Does your age influence what kind of investor you are? Depending on when you started investing appears to have an impact on your investment style, based on a large random sample of U.S. equity portfolio managers. Managers between 50-64 years old appear more likely to be value managers while those younger and older tend to be more growth. In this report we share potential reasons for this plus give a recap of 2017 which saw Growth outperform Value by the largest margin since 1999.

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