At times, investors tend to underestimate risks that seem unlikely to happen. But potentially high impact risks that have a low probability of occurring are important to consider while building and managing portfolios. Here is a list of such risks that markets could encounter in the short to medium term.
Why interest rates may stay higher for longer than markets expect
February 15, 2023
2023 has just begun, but so far inflation and interest rates continue to dominate business headlines. Central banks around the world are deliberating what to do next after relentlessly raising interest rates to fight off the highest inflation we’ve seen in the last 30 years. Rate hikes have affected all asset classes and left investors with few places to hide. Inflation, although likely passed its peak, remains elevated and it could be a while until it’s under control.
No two ESG ratings are the same
January 30, 2023
The goal of environmental, social and governance (ESG) ratings is to provide information on an entity's performance related to ESG issues. Entities include companies, non-corporate organizations and investment funds. This article looks at how ratings can differ widely because of varying inputs and measurements. Consistent application and clear communication of what goes into proprietary ESG ratings could go a long way to help better understand and use ESG scores.
Why does income diversification matter?
January 25, 2023
Many plan members want to grow their capital and achieve steady streams of income in retirement. There’s a solution.
Q4 2022 | Market Update
January 13, 2023
Rapid interest rate hikes reset valuations for major asset classes in 2022. We expect the focus to turn to concerns about growth and earnings slowing down in 2023.
Bonds: the worst is behind us
December 21, 2022
After a horrendous 2022, bonds look poised for a better year in 2023. We think high quality bonds and their income potential could help portfolios overcome volatility in the year ahead.
2023 corporate earnings may be in trouble as consumers lose confidence and inflation fades
December 07, 2022
Following the pandemic, most consumers face soaring living costs, job uncertainty and declining home and/or portfolio values. It’s clear that our economy is confronting a big headwind.
Housing and jobs data point to a looming recession
December 02, 2022
Christine Tan, Portfolio Manager , SLGI Asset Management Inc., discusses how the risk of a recession is now elevated due to a slowdown in housing and a declining consumption as consumers feel the pinch of inflation and higher interest rates.
The demise of RRBs in Canada
November 30, 2022
The government of Canada is no longer issuing real return bonds. This will likely impact a number of investment managers… but Sun Life Granite Series of Funds are well-positioned in the aftermath.