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Investors should take neutral stance, recommends GLC report

By The IJ Staff | July 09 2018 11:30AM

GLC Asset Management Group’s 2018 Mid-Year Capital Market Outlook recommends investors take a neutral stance in the second half of the year. “Now is not the time to overreach with aggressive growth cycle positioning,” says GLC.

Later stage of the business cycle

“The world economy and financial markets continue to progress through the later stage of the business cycle,” says Brent Joyce, Chief Investment Strategist, GLC. “We caution against extrapolating the trends of the past several years – especially in the ‘darling’ areas of information technology, high yield bonds, or emerging markets.”

Mr. Joyce says GLC’s outlook for the second half of 2018 calls for single digit equity price gains, and for fixed income investors, flat to 1 per cent total returns.

Broad and diversified geographic sector allocations

The report says a neutral stance provides exposure “to participate in equity market growth without stretching one’s risk tolerance. We recommend broad and diversified geographic sector allocations, favouring Canadian and U.S. equities over U.K. and emerging markets, and neutral exposures to Europe and Japan.”

To learn more, consult the full report.

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