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Market Update. “U.S. and China — trade deal, or no deal?”

May 22, 2019

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Market Update. “U.S. and China — trade deal, or no deal?”

Market Insights

Canadian and U.S. equity markets hit new all-time highs in April, while international equity markets continued to make overall gains. As we entered the second week of May, the question making the global equity markets nervous was “U.S. and China — trade deal, or no deal?”

U.S. economic data and first quarter earnings drove another month of gains in April, for four straight months of unprecedented gains. Global equity markets came along for the party with positive sentiment from the U.S. and China, helping ease concerns of a global slowdown.

  • U.S. first quarter economic growth and April job numbers were much better than expected
  • U.S. first quarter earnings in mid-April came in better than expected
  • China’s first quarter economic growth was better than expected and March industrial production was strong
  • The U.S. and China trade talks are hitting rough waters in May 
  • The Canadian S&P/TSX Composite Index hit a new record high in April
  • Oil prices could be impacted by some percolating geopolitical events 

See how these events impacted your investments below.

ETF Portfolios

ETF Safety Portfolio was up 0.80% in April and 4.30% in the past year.

The ETF Safety Portfolio made gains from equity holdings with key gains from U.S., Canadian and international equities holdings.     

ETF Conservative Portfolio was up 1.34% in April and 5.65% in the past year.

Canadian, U.S. and international equities contributed to the portfolio’s gains during the month. The portfolio’s fixed income holdings also contributed, but at a much more modest level.

ETF Balanced Portfolio was up 1.81% in April and 7.32% in the past year.

Investors in the Balanced Portfolio are having a good first four months of the year. The model continues to benefit from its equity holdings (U.S., Canadian and international) for the month, while at a lower level of risk than the Growth Portfolio.

ETF Growth Portfolio was up 2.17% in April and 8.16% in the past year.

Due to a higher allocation to U.S. equities (which outperformed the domestic Canadian and international equity holdings), the portfolio posted another solid month of gains. 

ETF Aggressive Portfolio was up 2.39% in April and 9.44% in the past year.

With the highest U.S. exposure and the lowest fixed income exposure, the Aggressive Portfolio delivered on its mandate of another stellar month for global equities. 

Private Investment Portfolios

Safety Private Portfolio was up 0.97% in April and 5.52% in the past year.

Anchored by fixed income, real estate and mortgage asset classes, the Safety Portfolio delivered another month of stable returns.

Balanced Private Portfolio was up 1.58% in April and 7.02% in the past year.

Equity and U.S. exposure gains were complemented by real estate and fixed income asset classes. 

Aggressive Private Portfolio was up 1.62% in April and 8.23% in the past year.

The Aggressive Portfolio benefited from a higher allocation to U.S. asset classes through one of its fund holdings. 

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