Market update. Higher oil, tech profits, good economic news pushes up returns
- Returns for the WealthBar Balanced ETF Portfolio were up 2.7% for October.
- Over the year to date, the Balanced ETF Portfolio has seen a 9.7% return.
- Our Aggressive ETF Portfolio is up over 11% for the year to date.
See more about how our portfolios performed.
We’ve seen positive performance in our portfolios, partly thanks to a fired-up Canadian economy which added over 35,000 full time jobs in October. While recent data shows the country may be past its extraordinary growth spurt from earlier in the year, the numbers are still looking positive overall. The S&P/TSX 60 ETF reflected this market strength, going up 3 percent.
The recent interest rate hikes may not be repeated as frequently in the coming year. Inflation is still relatively low. The price of oil also moved up to $55US. That is good news for an economy which still has relatively deep roots in the energy sector.
US enjoys some sunny economic news in October
Recent volatility on the US and international scene has also subsided and there was really nothing terribly spooky for investors in the lead-up to Halloween. The US economy kept growing even in the wake of natural disasters. That is happening, despite how political partisanship may starkly colour perceptions of economic health.
One particular source of good news was from the tech sector. Amazon stock jumped 10% in late October after its 3rd-quarter financials appeared to surpass expectations. Apple was similarly riding high off of surging pre-orders of the iPhone X. Customers were apparently unfazed by the popular gadget’s $999 price tag. FANG stocks overall had a very good run towards the end of October.
Germany, Japan lead regional packs with higher-than-expected growth
On the international scene, Europe’s market showed good returns last month, with Germany powering most of that growth, as usual. The country raised its GDP growth forecast to 1.9% from 1.6%, buoyed by higher spending and solid employment numbers.
In Japan, the re-election of Prime Minister Shinzo Abe was a sign that voters appreciated his focus on helping the economy. The Bank of Japan predicts steady economic expansion. The Nikkei has hit all-time highs since he has been in power. It also returned a relatively remarkable 8% last month.
What does all this mean for your investments?
October was generally a good month for investors who are enjoying higher returns from a mix of Canadian and international assets. WealthBar’s portfolios are well-positioned to take advantage of this growth, while retaining the advantage of diversified holdings.
Do you have questions about your investments at WealthBar? Set up a call to talk to your financial advisor, who can help you get the answers you need.