Empire Life Blog Financial markets at a glance

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2021-Budget-infographic-ELSymbol

FINANCIAL MARKETS
TO GLOSS

SEPTEMBER 30, 2022

Canadian equities were mostly negative, while US equities were mixed over the quarter. Yields rose through the quarter. Government bonds outperformed corporate bonds, and short term bonds outpaced long term bonds. Here are the financial markets at a glance.

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CANADIAN EQUITIES

US EQUITIES

Sector
7 of the 11 Canadian equity sectors ended the quarter in negative territory. Here are the best and worst performing sectors relative to last quarter.

Sector
5 of the 11 US equity sectors ended the quarter in negative territory. Here are the best and worst performing sectors relative to last quarter.

WORST PERFORMERS

BEST PERFORMERS

Industrial

Industrials

Consumer Discretionary-nobg-sm

Consumer
Discretionary

Materials

Materials
4.3% Up arrow
4.2% Up arrow
2.5% Up arrow

Communication Services

Communication
Services

RealEstate

Real Estate

Healthcare

Health Care
-8.7% Up arrow
-6.4% Up arrow
-6.2% Up arrow

Consumer Discretionary-nobg-sm

Consumer
Discretionary

Energy

Energy
11.2% Up arrow
9.0% Up arrow

Communication Services

Communication
Services

RealEstate

Real Estate
-7.0% Up arrow
-5.2% Up arrow

Company size performance comparison
Medium-sized companies modestly outperformed small companies, while large companies were negative over the quarter.

Company size performance comparison
Small and medium companies were positive, with small companies outperforming the most. Large companies were flat.

What’s working/What’s not working

  • From a style perspective, growth was positive, outperforming both value and the index.
  • All factors and the index were negative this quarter, but quality and momentum outperformed the index while dividends trailed.

What’s working/What’s not working

  • Growth and value were both positive, with growth outperforming the index in the quarter.
  • Factors were mixed this quarter, with momentum outperforming the index while dividends trailed.

GLOBAL EQUITIES

FIXED INCOME

Regional

INV-3005-GlobalEquities-EN-Q3-2022

Company size performance comparison
Global large companies were flat over the quarter, while small companies were negative.

Large Corporations Up arrow Small Business Down arrow
Large Companies Small Companies

What’s working/What’s not working

  • From a style perspective, growth ended the quarter positive, outperforming value and the MSCI World Index.
  • Momentum was the factor that outperformed the index, while other factors were negative, with dividends underperforming the most.

Yields rose this quarter, with short term bond yields rising more than long term yields.

Relative bond performance

Bond yield

Bond Yield image@2x

 Bond yields were up with both shorter and longer date bond yields increasing over the quarter.

Yield on the Canada 2-year rose from 3.10% two 3.79%.
Canada 5-year rose from 3.10% two 3.32%.
Canada 10-year fell from 3.23% two 3.16%.
Canada long bond fell from 3.14% two 3.09%.

Source: Morningstar Research Inc. as of September 30, 2022. © 2022 Morningstar Research Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

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This article includes forward-looking information that is based on the opinions and views of Empire Life as of the date stated and is subject to change without notice. The information contained herein is for general purposes only and is not intended to be comprehensive investment advice. We strongly recommend that investors seek professional advice prior to making any investment decisions. Empire Life and its affiliates assume no responsibility for any reliance on or misuse or omissions of the information contained herein.

September 2022

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