In the following 4- minute video, Blair Setford, Canada Life Investment Management Ltd.’s AVP of Product Management, observes that markets rallied in the third quarter, with strong risk appetite driving North American and global equities to record highs.
Central banks, including the Bank of Canada and the U.S. Federal Reserve, resumed interest rate cuts, which bolstered investor confidence and are broadly viewed as a stabilizing measure rather than a signal of economic distress.
In Canada, the S&P/TSX posted solid gains, briefly surpassing the 30,000 mark, supported by strength in materials, gold, and financials. Canadian equities are on track to outperform U.S. counterparts for the first time in a positive year for both markets since 2016. In the U.S., the S&P 500 reached new highs, fueled by the Fed’s rate cuts and optimism around artificial intelligence, despite late-quarter volatility and ongoing concerns about inflation and employment.
Fixed income markets reflected easing recession fears, with corporate credit spreads at their lowest levels since the late 1990s. Globally, markets appear to be in a favorable position—experiencing steady growth alongside accommodative monetary policy.
Looking ahead, Blair thinks that the key question is whether rate cuts serve as a safety net or a rescue. Chief Investment Officer Corrado Tiralongo believes they will support further growth without signalling imminent risk. In this environment, diversification and resilience remain essential.
Blair suggests that investors stay invested, follow a structured strategy, and consult their financial advisor if their situation has changed or if they have concerns about portfolio resilience.
Watch our video to learn more:
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