Equity markets rose again this quarter, capping an end to 2009 that saw asset values climb significantly, prodded forward by accommodative monetary policy and a host of other government measures intended to stave off a depression. In a year where 20 and 30 per cent returns were not uncommon, we note how sentiment has changed significantly in 12 months.
Asset markets moved ahead in the third quarter as investors continued to seek out risk, and administered rates remained low while government spending filled gaps in the global economy.
Global equity markets, corporate bond markets, and commodities continued the rally begun late in Q1 2009 as “less bad” economic reports coupled with improved credit markets and a belief that the world economy was not plunging into an abyss.
The positive return of the TSX this quarter marks the first positive quarterly return in a year. Over the quarter, the Fund gained 5.9 per cent.
It was the worst of times, it was the best of times.
In terms of economic news flow, the best we could do was claim that it had become “less bad” by the end of the first quarter. To this end, equities started the quarter off strong in January. It then proceeded to fizzle out in February, when continued poor economic news accompanied a lack of direction from the U.S. government in terms of a plan to support that country’s banking system. In mid-March, one of the biggest monthly moves on the TSX in the last several years took hold.
S&P/TSX fell 23.5 % in the quarter, bringing the loss to just over 35% for the year. This quarterly return is only second to Q3 1998 as the worst quarter since 1970. The annual return was the worst over that time period. What made the quarter, and the last half of 2008, extremely frustrating for investors was the rapid way in which equity differentiation vanished: large cap and small cap, value and growth stocks were all pounded. In 2008, 91% of stocks in the TSX were down. With the exception of treasury notes and bonds, there were few places to hide.
This September was among the worst for Canadian equities in the last ten years. The S&P/TSX Composite Index fell 14.6%, as energy and materials stocks came under pressure as the U.S. credit crisis became global and companies outside of financial services began to face the reality of a significant slowdown in the global economy. As we wrote in our second quarter report, the discrepancy between the Canadian equity market and those of other developed markets had to close: as it turned out, our market dropped to fall in line with others.
Eric Dzuba - Q4 2009 Commentary
Equity markets rose again this quarter, capping an end to 2009 that saw asset values climb significantly, prodded forward by accommodative monetary policy and a host of other government measures intended to stave off a depression. In a year where 20 and 30 per cent returns were not uncommon, we note how sentiment has changed significantly in 12 months.
Eric Dzuba - Q3 2009 Commentary
Asset markets moved ahead in the third quarter as investors continued to seek out risk, and administered rates remained low while government spending filled gaps in the global economy.
Eric Dzuba - Q2 2009 Commentary
Global equity markets, corporate bond markets, and commodities continued the rally begun late in Q1 2009 as “less bad” economic reports coupled with improved credit markets and a belief that the world economy was not plunging into an abyss.
The positive return of the TSX this quarter marks the first positive quarterly return in a year. Over the quarter, the Fund gained 5.9 per cent.
Eric Dzuba - Q1 2009 Commentary
It was the worst of times, it was the best of times.
In terms of economic news flow, the best we could do was claim that it had become “less bad” by the end of the first quarter. To this end, equities started the quarter off strong in January. It then proceeded to fizzle out in February, when continued poor economic news accompanied a lack of direction from the U.S. government in terms of a plan to support that country’s banking system. In mid-March, one of the biggest monthly moves on the TSX in the last several years took hold.
Q4 2008 Commentary
S&P/TSX fell 23.5 % in the quarter, bringing the loss to just over 35% for the year. This quarterly return is only second to Q3 1998 as the worst quarter since 1970. The annual return was the worst over that time period. What made the quarter, and the last half of 2008, extremely frustrating for investors was the rapid way in which equity differentiation vanished: large cap and small cap, value and growth stocks were all pounded. In 2008, 91% of stocks in the TSX were down. With the exception of treasury notes and bonds, there were few places to hide.
ERIC DZUBA Q3 2008 COMMENTARY
This September was among the worst for Canadian equities in the last ten years. The S&P/TSX Composite Index fell 14.6%, as energy and materials stocks came under pressure as the U.S. credit crisis became global and companies outside of financial services began to face the reality of a significant slowdown in the global economy. As we wrote in our second quarter report, the discrepancy between the Canadian equity market and those of other developed markets had to close: as it turned out, our market dropped to fall in line with others.