Natixis Investment Managers’ Post

Being selective in your investment choices and exercising patience with those investments can make all the difference in achieving long-term financial success. While it might be tempting to cast a wide net and invest broadly, this approach can often be suboptimal. Instead, a focused investment strategy, backed by thorough quantitative and qualitative analysis, tends to yield better results. Quantitative analysis helps us understand the numbers, trends, and financial health of potential investments. Meanwhile, qualitative analysis provides insights into the management quality, industry position, and future prospects of a company. Together, these analyses enable us to make informed, high-conviction investment decisions. A recent article highlights how the ‘junk’ in broad index funds can drag down your portfolio’s performance, underscoring the importance of selective investing. At Shepard and Shepard Wealth Management Team of Raymond James, we believe in the power of patience and precision. By carefully selecting our investments and allowing them the time to grow, we can better navigate market volatility and pursue sustainable returns. As Warren Buffett wisely said, ‘The stock market is a device for transferring money from the impatient to the patient.’ Remember, in investing, sometimes less is more.

In the investment world, we often hear the term "value investing". Many investors flock to a stock because of its low price-to-earnings ratio or low price-to-book ratio, believing it to be an undervalued treasure. However, the reality may not be so. Some so-called "value stocks" actually hide unavoidable fundamental problems - this is the so-called "value trap". Identifying value traps requires not only simple financial indicator analysis, but also a deep understanding of industry trends, company management and market environment.

📊 Market Update: in early market fading, markets are trending lower as we approach the holiday week, with multiple significant developments affecting market sentiment: Key Points: - Government Shutdown Risk: The failed House vote and potential shutdown is weighing heavily on markets. - PCE Data Encouraging: November's PCE report came in cooler than expected at +0.1% monthly (+2.4% yearly), while Core PCE held steady at +2.8% annually. - Treasury Yields: The 10-year yield hit a 7-month high at 4.569%, reflecting ongoing inflation concerns despite Fed's recent rate cut. - Economic Resilience: Personal income (+0.3%) and spending (+0.4%) show continued economic strength, though at a moderating pace. 🔍 Looking Ahead: The next Fed meeting will coincide with the presidential transition, and these cooler inflation numbers suggest the Fed may maintain current rates early in 2025. Want to discuss how these developments might affect your investment strategy? Schedule a meeting at https://lnkd.in/gV39bdjg

March was a great month for stock investors, with the major U.S. indices as well as the S&P/TSX Composite Index hitting record highs. Get all of last month’s key market and economic data from James Gauthier, CFA, Vice-President, Investment Products & Platforms, iA Private Wealth.   #Stocks #Bonds #Commodities #Economy #BoC #Fed #WealthManagement

📈 Markets experienced significant turbulence following the Fed's "hawkish cut" yesterday, with major indices seeing their steepest declines in months. While the Fed delivered the expected 25 basis point cut to 4.25-4.50%, Powell's cautious stance on 2025 rate cuts triggered a broad market selloff. The Dow's 10-day losing streak (its longest since 1974) reflects investors' surprise at the Fed's more conservative outlook, with only two rate cuts projected for 2025 instead of the previously expected four. On the economic front, this morning's data shows some resilience - weekly jobless claims dropped to 220K, while Q3 GDP was revised upward to 3.1%, demonstrating the U.S. economy's strength despite various challenges. As Powell noted, while we haven't officially achieved a "soft landing," the U.S. economy is outperforming global peers. Want to discuss what these market changes mean for your portfolio? Schedule a meeting at https://lnkd.in/gV39bdjg.

Canadian stocks had a positive month in February, while the S&P 500, Dow Jones and Nasdaq 100 hit new all-time highs. Get all of last month’s key market and economic data from James Gauthier, CFA, Vice-President, Investment Products & Platforms, iA Private Wealth. #Stocks #Bonds #Commodities #Economy #BoC #Fed #WealthManagement

Bad timing has costed investors MORE THAN $150,000 over the past decade. 😬 😬 😬 Bad timing has costed investors 15% of gains over the past decade. Assuming you have $1M in an investment account that's $150,000! Morningstar’s latest "Mind the Gap" study highlights a common pitfall for investors: poor timing. Over the last decade, the average investor's return trailed the actual fund performance by about 1.1% annually—a 15% total loss in potential gains. Why? Market timing mistakes, like buying high and selling low. Key findings: Simpler is better: Investors using diversified, all-in-one funds (like allocation funds) experienced narrower gaps. Volatility hurts: The most volatile sector equity funds had the widest gaps, with investors losing 7% per year. ETFs vs. Mutual Funds: ETFs showed wider gaps compared to open-end funds, with index ETFs lagging by over 1% per year. The lesson: Less is more. Staying invested, minimizing transactions, and focusing on low-cost, diversified funds can help capture more of your investments' potential returns. #investing #diversification

As stock/bond correlations continue to rise, many investors are turning to alternatives for increased diversification. In BlackRock's Q2 implementation guide, my colleagues discuss why now may be an opportune time to increase your liquid alternative exposure. They discuss how the current interest rate environment and higher fixed income yields may benefit alternatives, and also explore how “cash plus” alternatives may be able to provide attractive returns with low correlations to stocks and bonds. For a deeper dive and to discover how you can potentially leverage these opportunities, check out the full portfolio implementation guide here -> https://lnkd.in/gVPvDrjM.

Private markets investments can be a powerful tool in helping investors create diversified portfolios and enhancing the traditional 60:40 stocks and bonds portfolio. They can improve outcomes and slightly reduce the volatility of a portfolio.

Monthly views: Conditions remain favourable for equity markets overall but we trim exposure to tech stocks following their stellar run. Read the full article https://lnkd.in/egY7mzmZ #assetallocation #investmentoutlook #barometer