Mackenzie Investments Bites & Insights

Investors widely expected a rate cut from the Fed, but the bold decision to lower interest rates by 50 basis points took many by surprise. In this episode, Dustin Reid, Chief Fixed Income Strategist, delves into the Fed’s first rate cut decision since 2020, its future outlook, and how it could affect other central banks worldwide. Dustin also examines recent Canadian inflation data, highlighting signs of economic weakness compared to the US, and how this might influence the Bank of Canada’s future decisions. Lastly, Dustin touches on the upcoming US presidential election and its potential impact on economic policies, particularly regarding immigration and labour market dynamics. This episode was recorded on September 19, 2024.

In times of heightened market uncertainty, low volatility ETFs have increased in popularity. But can they help advisors manage risk without sacrificing their clients’ equity exposure? In this episode, Prerna Mathews, VP of ETF Product Strategy, and Nicholas Tham, Portfolio Manager on Mackenzie’s Global Quantitative Equity Team, explore the concept of low volatility ETFs, their performance, and common misconceptions. Nicholas highlights the team’s unique approach and investment process behind Mackenzie’s suite of low volatility ETFs. Lastly, Prerna and Nicholas share advice on how advisors can discuss low volatility ETFs with their clients. Further reading: - Low volatility ETFS: Ride out volatility without missing out This episode was recorded on September 5, 2024.

In this episode, Benoit Gervais, Portfolio Manager and Head of Mackenzie Resource Team, discusses the current state of the resource sector and provides his short and long-term outlook and trends on the commodity complex. Benoit shares his advice on managing exposure to the resource sector within a Canadian equity allocation, highlighting the importance of diversification and potential for alpha generation. This episode was recorded on September 6, 2024.

In this episode, Lesley Marks, Chief Investment Officer of Equities, discusses the latest US non-farm payroll report, unpacking its mixed results and the implications for the Fed’s upcoming moves. Lesley also examines the Bank of Canada’s recent 25 basis point cut, exploring how it fits within the broader Canadian economic landscape. Lastly, Lesley previews the upcoming US presidential debate, offering insights on key economic policies to watch for. This episode was recorded on September 9, 2024.

On this episode, Dustin Reid, Chief Fixed Income Strategist, analyzes the latest US CPI and PPI data, shedding light on the current state of inflation and its potential impact on the Fed’s decisions for the remainder of the year. Dustin shares his insights on the recent surge in market volatility, examining both technical factors and fundamental concerns. Additionally, Dustin discusses the Bank of Canada’s rate cut trajectory and highlights his team’s recent portfolio trades. This episode was recorded on August 14, 2024.

On this episode, Prerna Mathews, VP of ETF Product Strategy, and Luc Lafleur, AVP of Portfolio Construction at Mackenzie Investments, share their insights on how advisors can optimize portfolio construction with ETFs and how ETFs can contribute to running efficient advisory practices. Prerna and Luc explore the impact of global economic drivers on portfolio strategies and the importance of aligning strategic asset allocation with investment goals. Prerna and Luc also discuss active and passive investing, how to avoid common portfolio construction mistakes, and the versatility of ETFs in both strategic and tactical allocations. Further Reading: - How advisors can fight behavioural biases with ETFs - Your step-by-step guide to active ETF due diligence This episode was recorded on July 26, 2024.

Although the market did not anticipate a rate cut, early indications suggest the Fed is leaning towards cutting rates in September. On this episode, Dustin Reid, Chief Fixed Income Strategist, discusses the recent Fed meeting, analyzing the Fed’s forward guidance and the likelihood of upcoming rate cuts. Dustin also highlights key Canadian economic data and potential further rate cuts by the BoC, updates from the Bank of Japan, and insights on the US election’s potential impacts on market volatility. This episode was recorded on August 1, 2024.

On this episode, Lesley Marks, Chief Investment Officer of Equities, discusses the Bank of Canada’s latest rate cut decision, explores the driving factors behind monetary policy and its implications for the Canadian economy. Lesley also offers her insights on the commodity market, highlighting how copper is poised for growth and its crucial role in the energy transition and AI infrastructure. This episode was recorded on July 26, 2024.

On this special episode of Market Exchange, Dustin Reid, Chief Fixed Income Strategist, recaps the pivotal events leading to Vice President Kamala Harris’ rise as the presumptive Democratic nominee. Dustin analyzes the potential market and economic implications of a Harris administration. Dustin also explores the dynamics of the so-called ‘Trump trade’ and examines how the Vice Presidential nominees could influence this year’s election. This episode was recorded on July 25, 2024.

Is value investing poised for a comeback in the current market environment? In this episode, Richard Wong, Portfolio Manager and Head of Mackenzie Cundill Team, explores this question. Richard discusses why he believes the market is shifting towards value, highlighting value investing’s historical outperformance during periods of structurally positive inflation and interest rates. Richard also discusses three categories of value stocks – quality, cyclical, and deep value – and where he sees opportunities. This episode was recorded on July 9, 2024.

On this episode, Dustin Reid, Chief Fixed Income Strategist, discusses the latest CPI data and its implications for the Fed’s monetary policy. Could this suggest a path forward for the Fed to begin a rate cutting cycle as we approach the end of the summer? Dustin also explores the potential market implications of a Trump victory and a Republican sweep in the upcoming US elections. This episode was recorded on July 11, 2024.

What are active ETFs and what is behind their growing popularity in Canada? On this episode, Prerna Mathews, VP of ETF Product Strategy, and Andres Rincon, Head of ETF Sales and Strategy at TD Securities, discuss the intricacies of active ETF structures, and the similarities and differences in trade experiences between active and index ETFs for advisors and investors. Prerna and Andres also examine the impact of trading global equity and fixed income ETFs in a T+1 trading environment. Further Reading: - The value of active fixed income ETFs This episode was recorded on June 20, 2024.

What has been causing the surprising upward trend in gold prices despite rising real rates? On this episode, Benoit Gervais, Portfolio Manager and Head of Mackenzie Resource Team, explores how the demand for gold has been shifting from the Western world to Asia. Benoit also discusses the factors influencing commodity trends such as politics, the energy transition, and AI’s impact on today’s market. This episode was recorded on June 14, 2024.

With CPI showing signs of easing, indications from the Fed reveal they aren’t in a rush to lower rates. On this episode, Dustin Reid, Chief Fixed Income Strategist at Mackenzie Investments, discusses how the markets have been reacting to the latest CPI report and Fed decision. Dustin also touches on the ECB’s decision to cut its benchmark rate by 25 basis points, increased volatility in emerging markets – specifically in Mexico – and recent portfolio trades. This episode was recorded on June 13, 2024.

The investment and economic water have smoothed over the last six months, yet market expectations of interest rate cuts were challenged by resilient growth and inflation. On this special episode, Lesley Marks, CIO of Equities, and Steve Locke, CIO of Fixed Income and Multi-Asset Strategies, discusses their market outlook for the rest of 2024. Topics discussed in their conversation include: Global growth and the US economy Inflation and interest rates Bond market volatility and opportunities Impacts of the energy transition on equity and fixed income markets Market implications of generative AI Geographic investment opportunities For more insights and perspectives, download our 2024 mid-year market outlook. This episode was recorded on May 31, 2024.

What’s the significance of the Bank of Canada’s decision to cut interest rates and what could it mean for investors? On this episode, Dustin Reid, Chief Fixed Income Strategist, breaks down the BoC’s decision to cut interest rates by 25 basis points. As the first G7 country to do so, what could this mean for the coming months? Dustin also discusses recent election results in South Africa, Mexico, and India and their potential impact on market volatility. This episode was recorded on June 5, 2024.

For over 30 years, the Mackenzie Ivy Team has established itself as one of the most time-tested defensive strategies, focusing on quality, long-term sustainability, and corporate culture. On this episode, Matt Moody, Portfolio Manager and Head of Mackenzie Ivy team, discusses the team’s approach to stock selection and portfolio construction and how they seek companies with competitive advantages, good growth prospects, and high returns on capital. Matt also explains how Ivy’s approach aligns with the goal of providing clients with a stable and reliable investment experience, even during volatile market environments. This episode was recorded on May 21, 2024.

After a strong first quarter, equity markets experienced a pullback in April as odds of a forthcoming rate cut by the Fed seem unlikely. On this episode, Lesley Marks, Chief Investment Officer of Equities, discusses the negative performance of the equity markets in April. Lesley suggests it was a modest pullback rather than the start of a downward trend. Lesley also shares her insights on the latest earnings season and explores the potential impacts of diverging policies between the Fed and Bank of Canada. This episode was recorded on May 6, 2024.

Is the Bank of Canada hinting at a rate cut in June, even as the Fed adopts a more hawkish stance? On this episode, Matthew Schnurr and Dustin Reid, Chief Fixed Income Strategist at Mackenzie Investments, discuss the implications of the Fed’s latest meeting and its unexpected adjustments to their quantitative tightening program. Given the unique economic pressures in contrast to the US, Dustin explores the possibility of the BoC to begin cutting rates in June. This episode was recorded on May 2, 2024.

Generational investment opportunities rarely arise, but that’s exactly what’s happening in the push toward net zero. On this special Earth Day episode, John Cook, Portfolio Manager and Team Co-Lead of the Mackenzie Greenchip Team, and Konstantin Boehmer, Head of Fixed Income, discuss the latest developments in the energy transition and explore investment opportunities in both equity and fixed income markets. Further reading: A $US4.5 trillion investment opportunity in the energy transition 2023 sustainable investing report This episode was recorded on April 11, 2024