TSX ETF Investor Centre
Why It’s Time To Add Europe
With U.S. markets near peak valuations, investors are finding value in European equities, which are at historic discounts. Supported by global economic recovery, cooling inflation, and resilient earnings, European stocks, are expected to advance.
Real Assets For Persistent Inflation
With inflation likely here to stay for the foreseeable future, investors should look for strategies that perform well in inflationary environments. Discover how real assets can help protect your portfolio from inflation.
Inflation Is Here to Stay
To say inflation has been running hot might be an understatement without proper context. On August 10, 2022, the Bureau of Labor Statistics announced that the Consumer Price Index in the U.S. increased by 8.6% from the prior year through July. This was down only marginally from last month when the year-over-year inflation through June rate came in at 9.1%, which was a 40+ year high. The chart below shows that inflation began to take hold in early 2021 as vaccines were rolled out and the economy began to recover from the pandemic. While initially thought to be deflationary, the pandemic became a powerful inflationary force around the world as consumers, whose balance sheets were buoyed by government support, purchased goods at a record pace while supply, which was negatively impacted by pandemic shutdowns, could not keep up.
Renewables: A Clean Solution
Since Russia’s invasion of Ukraine, the S&P Utilities index is up 8.3%, significantly outperforming the S&P 500 by 8.8% as of March 11, 2022.