“We miss 100% of the shots that we do not take” – Wayne Gretzky
Happy New Year!
Please find in this January edition of the BMO Segregated Funds Monthly update:
- Review of This Week in the Markets from BMO GAM
- BMO GIF Performance Summary – Dec 31st, 2022
- Check out the BMO ETF Portfolio Commentary – Steven Shepherd, CFA Portfolio Manager (attached)
- BMO GIF Case Study – Estate Preservation and wealth transfer – why take the risk?
Please find the latest version of This Week in the Markets
- The S&P 500 Index lost 1.9%, as a hawkish turn from the Federal Reserve proved too much for investors to stomach. Long-duration assets suffered as treasury yields saw dramatic surges, with the benchmark 10-year treasury yield spiking 25 bps. Technology was among the worst sectors as investors sold growth stocks indiscriminately, with the tech-centric Nasdaq Composite Index tumbling over 4%, while banks were in favour due to sharply steeper yield curve.
- The S&P/TSX Index fell 0.7% and outperformed its U.S. counterpart. Sector composition was key as its concentration in banks and energy companies helped arrest declines. Long-term treasury yields tracked the U.S. higher, as Canada saw an even more dramatic spike in 10-year yield (29 bps) which helped boost the Financials sector, now accounting for a third of the TSX’s weight. Energy stocks also rose in tandem with oil prices, while Technology was by far the worst sector as Shopify endured a 17% decline.
- Global stocks all reacted to the Fed’s hawkish stance. Europe’s STOXX 600 declined 0.3%, Japan’s Nikkei 225 Index was down 1.1%, while China’s CSI 300 Index fell 2.3% as its property sector continues to struggle with defaults.
| Attachment | Size | Type |
|---|---|---|
| Dec 2021 BMO ETF Portfolios Monthly Commentary.pdf | 476.44 KB | application/pdf |
| Dec 31st 2021 BMO GIF Performance Summary.PDF | 156.98 KB | application/pdf |