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August 2022

Equity and Fixed Income Strategy

Growing Evidence of Inflation Peaking Supports Market Stabilization

Stéphane Rochon, CFA, Equity Strategist; Eric Yoo, Associate

Notwithstanding the recent relief rally, the market has been mired in negativity for the entire year. No
single factor has been more damaging to financial assets- both bonds and stocks- than inflation, which has
pushed up interest rates dramatically and lowered equity valuations. We have previously likened inflation
to a cancer for financial assets, eroding the present value of interest coupons (hurts bonds) and of
corporate free cash flows (bad for stocks, especially high multiple, high duration equities).

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Do not hesitate to give either of us a call at 416 359-7565 or 416-359-7564 or email Sharon Kubicek or Alisa Carli if you have any questions respecting your portfolio and the prevailing investment, economic and political issues at play today.

Sharon and Alisa