The risks posed by higher rates, still-stubborn inflation as well as small but growing cracks in the overall economy — notably in Canada — suggest a rotation into low-volatility strategies may be prudent. On today’s episode, portfolio managers Chris McHaney, Matt Montemurro and your host Mckenzie Box discuss options for investors looking to de-risk a portion of their equity allocations. They also break down the likelihood of rising corporate default rates and the impact that could have on high-yield credit, as well as examine whether it’s time to start adding to utilities, among the worst-performing sub-indexes in North America year-to-date.
Portfolio Manager, Exchange Traded Funds
Chris has over two decades of experience in the investment industry and currently serves as portfolio manager for derivative-based and equity-based portfolios. This includes the management and trading of options on Canadian, US and European equities and ETFs. He also manages various cross-asset portfolios, which include Canadian and US fixed income and global equities. He has taken on numerous roles since joining BMO Financial Group in 2002, including Manager of Investments for BMO Asset Management Inc. where he was responsible for mutual fund manager monitoring and selection. In this role, he was also responsible for overseeing the currency hedging program across the mutual fund platform. Chris holds a BBA from York University’s Schulich School of Business and is a CFA charterholder.
Last week, the Bank of Japan loosened its yield curve control in a move that shocked markets. In today’s episode, portfolio managers Chris McHaney, Vishal Bhatia, and your host, Mckenzie Box, explore the latest developments and the potential implications of this shift. They also discuss China’s slowing economy, Fitch’s U.S. credit rating downgrade and agricultural commodities.
Following back-to-back increases, the Bank of Canada’s key interest rate now sits at 5% — the highest level in 22 years. On today’s episode, portfolio managers Alfred Lee, Chris McHaney and your host, Mckenzie Box, explore the impacts on markets and examine where monetary policy may be headed. They also discuss the latest U.S. CPI print, the Nasdaq’s rebalancing and ETF flows and trends.