Financial markets at a glance – June 30, 2022

MONEY MARKET
YOUNG

JUNE 30, 2022

Both Canadian and US revenues were negative for the quarter. The results were mixed on the edge. Corporate bonds outperformed government bonds, then short-term bonds outperformed long-term bonds. Here is the financial markets in a nutshell.

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ALL CANADIAN PRODUCTS

US EQUITIES

Section
10 of 11 Canadian divisions finished the quarter in negative territory. Here are the best and best performing sectors compared to the previous quarter.

Section
All 11 US equity sectors ended the quarter in negative territory. Here are the best and best performing sectors compared to the previous quarter.

HIGHLY MOUNTED

GOOD RIDERS

Power

Power

Resources

Resources

Consumer Staples

Buyer

Great food

3.5% Down arrow
-3.5% Down arrow
-5.0% Down arrow

Health care

Health care

Information Technology

More information
Modern

Equipment

Equipment

-45.6% Down arrow
-24.0% Down arrow
-23.6% Down arrow

Consumer Staples

Buyer

Great food

Resources

Resources

-1.5% Up arrow
-2.0% Down arrow

Consumer Discretionary-nobg-sm

Buyer

In theory

Communication Services
-23.7% Down arrow
-18.1% Down arrow

Comparison of company size
Large companies fared better than small and medium-sized companies, but both were negative for the quarter.

Comparison of company size
Small, medium and large companies had a bad quarter, with medium-sized companies the worst performers.

What is working / What is not working

  • From a style point of view, both the price and the size were bad, but the need for a large size is a process.
  • From a product perspective, earnings and volatility were the best performers while quality and trends were followed, but overall performance was negative.

What is working / What is not working

  • Value and growth were both negative, but value outperformed both the index and growth in the quarter.
  • All things were negative this quarter, but gains and low volatility outperformed the index.

ALL THE GOOD THINGS

TOTAL MONEY

Regional

INV-3005-GlobalEquities-EN-Q2-2022

Comparison of company size
Both small and large companies around the world were negative for the quarter while smaller companies underperformed.

Small Business Down arrow Big Companies Down arrow
Younger Companies Big Companies

What is working / What is not working

  • From a structural perspective, gain the best growth from the MSCI World Index. However, they both finished the quarter in negative territory.
  • Fragmentation and slow decline were things that exceeded the plan, but both things and plans were bad.

Yields were mixed this quarter, with short-, medium- and long-term yields moving higher as interest rates and inflation rose.

Relationship building work

Bond yields

Figure Bond Yield@2x

Bond yields rose with both short-term and long-term yields rising in the quarter.

Canadian 2-year yields rose from 2.27% to 3.10%.
Canada 5 years up from 2.39% to 3.10%.
Canada’s 10-year-old rose from 2.40% to 3.23%.
Canadian long bonds took off 2.37% to 3.14%.


Source: Morningstar Research Inc. as of June 30, 2022. © 2022 Morningstar Research Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its suppliers; (2) may not be copied or distributed; and (3) may not be accurate, complete, or timely. Neither Morningstar nor its affiliates shall be liable for any damages or losses arising from the use of this information. Past performance does not guarantee future results.

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June 2022