CIBC Asset Management Perspectives—Recovery in the works
Lower interest rates and the prospect of an ongoing economic recovery are supporting higher equity markets. Some market sectors moved too far, too fast earlier in the year, but we see the September pullback as a consolidation after a sharp rally rather than the beginning of a market downturn.
Asset class highlights
Equity: Driven by strong performance in Asia, emerging equities have been the best performing global region, outperforming even the S&P 500.
Fixed Income: Developed market bonds offer little value, while emerging market bonds present better opportunities. We’re focusing on select Asian bond markets and lower volatility markets like Chile and Poland.
Currencies: With the Fed policy rate near zero, a global economic recovery underway and the adoption of the new Average Inflation Targeting (AIT) framework, the U.S. dollar will likely come under increasing downside pressure.
China: Large infrastructure and monetary stimulus is boosting China’s post-lockdown recovery—which should now be labelled an economic expansion. The Chinese economy is expected to grow at an above-consensus average pace of 10% over the next four quarters.
Perspectives Video Commentary with Luc de la DurantayeTest 2