Investments Unplugged Macan Nia, Kevin Headland

Consumer exhaustion is kicking in, yields have come down, and the economy is beginning to show signs
of slowing.

Since outlining our three-themed bonds outlook, we’re finally getting an indication that it’s coming to
fruition. As we get ready to transition to phase 2 (“duration is your friend”), investors could embrace
longer duration on expectations that yields will fall further and the economy will continue slowing. Will
the headwinds that impacted bonds as yields rose become tailwinds when yields fall?
For all this and more, tune in to our new podcast episode.

Episode 87: Under the microscope: looking closely at a potential recession

Recession—it’s a word that continues to dominate the minds of investors and economic scientists alike. We hear about it so often, it sometimes seems like our expectations and concerns magnify. Yet, there could be important information that some people don’t see. Let’s focus the lens a little and scrutinize some of the financial details.

• What’s a soft or hard landing, and can we expect one or the other?
• Why has a potential recession been delayed?
• Does the economic data tell us whether a recession is inevitable?
• How will the anticipation of a potential recession continue to affect the markets?

Zoom in for a better view.

School has started once again. And while students return to their classrooms and books, investors’ minds turn to their portfolios, the economy, and the markets. But there’s so much to learn when it comes to managing your investments. So, what subjects have currently reached the forefront for the Capital Markets Strategy Team? Three key investment themes are at the top of the class right now:

• Prepare for near-term equity volatility amidst uncertainty.
• Buying bonds is one thing; buying the right bonds is another.
• Position your portfolios for tomorrow, not just today.

There’s the bell! Let’s listen in.

Many topics waltz across the minds of investors. They twirl through our thoughts and sometimes step
on our toes. Two things have been leading us lately: the rise of artificial intelligence (A.I.) and its role in
the markets, and the recent surprise Bank of Canada interest rate hike. We won’t dance around the
subjects—there are relevant inquiries that we need to address:
• Has A.I. played a role in what the S&P 500 Index been experiencing this year?
• Are we seeing a replay of the 1990s dot-com bubble?
• Why did the recent interest rate increase happen, and will it happen again?
• How much of the current economic situation can monetary policy control?
• What are the investment implications?
Let’s glide gracefully over the investment floor to answer these questions.

Every so often, we find ourselves swimming in a sea of similar-sounding questions about what’s affecting or going to affect the markets. These inquiries come around on a regular basis, but do they hold any water when it comes to our investments? We brave the waves, look at some of these recurring questions, and ask, “As investors, do we care about this?”

• U.S. debt ceiling discussions
• Sell in May and go away investment strategy
• periodic market rallies
• seasonal market volumes

Let’s dive in and see what’s beneath the surface.

Lightning struck some U.S. and European banks recently, and investors may be feeling like the jolt is still coursing through them. Frances Donald, Global Chief Economist and Strategist at Manulife Investment Management, joins the Capital Markets Strategy team to delve into current bank problems’ effects on the investment world and spark discussion on related topics:

• What’s been the historical response to banking volatility?
• How do we define financial stability?
• Are interest rates likely to go up or down in the near or distant future?
• Where does macroeconomics come into play in the investment cycle?
• Has our outlook for the coming months changed?

The markets may be somewhat charged right now, but stay positive.