iA Clarington 2019 market outlook

As we transition into 2019, elevated market volatility is likely to continue, providing skilled active managers with opportunities to capitalize on price dislocations. Our portfolio managers are anticipating:

  • A favourable environment for value stocks
  • Pockets of opportunity in global fixed income
  • Disruptive themes with attractive return potential
Dan Bastasic
  • Value stocks and credit likely to perform well in 2019
  • Expecting stronger returns in the second half of the year
  • Rates to keep rising but remain supportive of growth
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Michael Formuziewich
Peter Prattas
  • Canadian stocks may close the valuation gap with the U.S
  • Global growth should remain on solid ground into next year
  • Expecting elevated volatility amid a variety of geopolitical risks
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Jeff Sujitno
  • Floating rate securities are well positioned for rate hikes
  • Recession is unlikely, but looming tail risks warrant caution
  • A bias towards high-quality issues can reduce surprise risk
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Clément Gignac
  • Expecting the bull market to continue into 2019
  • Favouring EAFE, emerging market and Canadian stocks
  • 25% chance of recession next year
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Pierre Trottier
  • Expecting the tide to turn in favour of value stocks
  • U.S. financials are particularly attractive going into 2019
  • Simmering geopolitical tensions could impact markets
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Tyler Mordy
  • Equity opportunities in emerging Asia and Europe
  • Long-term fixed-income opportunities in emerging markets
  • Pickup in Chinese growth and stabilization in the Eurozone
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Loomis, Sayles & Company, L.P.
  • U.S. tax reform will continue to be a tailwind for equities
  • Select emerging market bonds poised to perform well
  • Elevated levels of market volatility will create opportunity
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PineBridge Investments LLC
  • Expecting the end of the U.S. rate hike cycle
  • Expecting reduced returns and elevated volatility
  • Dispersion should create security selection opportunities
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PineBridge Investments LLC
  • Growth assets should benefit from continued reflation
  • Favouring providers of productivity-enhancing technology
  • Global growth rates likely to converge with the U.S.
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PineBridge Investments LLC
  • Expecting emerging market corporate debt to outperform
  • Trade tensions a real risk to the global economy
  • Favouring countries with stable inflation outlooks
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QV Investors Inc.
  • Value opportunities in utilities, financials and energy
  • Competitive disruption has been severe and will accelerate
  • Prioritizing capital preservation over outsized returns
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Brad Radin
  • Underweight the U.S. and the technology sector
  • China and Hong Kong continue to offer attractive value
  • Focus on companies with strong balance sheets
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Larry Sarbit
  • U.S. equity valuations are still very expensive
  • We remain cautious, with elevated cash levels
  • Tax reform and deregulation are long-term tailwinds
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David Taylor
  • Value stocks poised to outperform growth
  • A recession in the U.S. is very unlikely
  • Trade wars could challenge global growth
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Vancity Investment Management Ltd.
  • SRI value opportunities in financials, health care and technology
  • European equities have room to catch up to U.S. stocks
  • U.S.–China tensions and Brexit could hamper global growth
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