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Sharon Kubicek
Alisa Carli
Christine Duggan

1 First Canadian Place
40th Floor , P.O. Box 150
Toronto, ON
M5X 1H3


September 2019
Equity and Fixed Income Strategy

Negative Interest Rates: A New Dawn?

We are making our first strategic asset allocation change since June 2017, decreasing the weighting in bonds by 5% and adding this to Canadian Equities. We believe the timing is right to take profits in bonds which we consider to be fully valued following the relentless decline in interest rates we have recently experienced. Conversely, this reduction in rates makes high quality, dividend growth equities that much more attractive. In particular, we think the Canadian market offers better upside potential – a point we have noted in past strategy reports. The simple chart below shows that the TSX discount to the S&P 500 has rarely been so wide in the last decade. 
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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