Financial markets at a glance – December 31, 2023


 

FINANCIAL MARKETS
AT A GLANCE

 

December 31, 2023

Canadian and U.S. equities were positive over the quarter. Yields fell through the quarter. Government bonds outperformed corporate bonds, and long-term bonds outpaced short-term bonds. Here are the financial markets at a glance.

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CANADIAN EQUITIES

 

U.S. EQUITIES

 
 

Sector
10 of the 11 Canadian equity sectors ended the quarter in positive territory. Here are the best and worst performing sectors relative to last quarter.

 

Sector
10 of the 11 U.S. equity sectors ended the quarter in positive territory. Here are the best and worst performing sectors relative to last quarter.

 

WORST PERFORMERS

BEST PERFORMERS

Information Technology
 Information
Technology

Financials

Financials

RealEstate

Real Estate

18.8% Up arrow
12.7% Up arrow
10.7% Up arrow

Energy

Energy

Materials

 

Materials 

 

Healthcare

Health Care

-9.1% Down arrow
1.9% Up arrow
4.9% Down arrow
 

RealEstate

Real Estate 

Information Technology

Information

Technology

15.9% Up arrow
14.3% Up arrow

Energy

Energy

Consumer Staples

Consumer

Staples

-9.2% Down arrow
2.9% Up arrow
 
 

Company size performance comparison 
Large sized companies outperformed medium and small sized companies, and all were positive over the quarter. 

 

Company size performance comparison 
Small companies outperformed large and medium sized companies, with medium trailing. All were positive over the quarter.

 
     
 

What’s working/What’s not working

  • From an investment style perspective, value outperformed growth while the S&P/TSX Composite Index trailed but all were positive over the quarter.
  • Momentum and low volatility outperformed the S&P/TSX Composite Index while dividends and quality trailed. All were positive over the quarter.
 

What’s working/What’s not working

  • From an investment style perspective, growth outperformed the S&P 500 Index while value trailed but all were positive over the quarter.
  • All factors and the S&P 500 Index were positive this quarter with momentum outperforming. Low volatility trailed the index.
 

 

 

GLOBAL EQUITIES

 

CANADIAN FIXED INCOME

 
 

 

Regional*
 

Map of regional equities performance at December 31, 2023.

Company size performance comparison 
Global large and small companies were positive over the quarter.

  Large Corporations Up arrow Small Business Up arrow
Large Companies Small Companies

What’s working/What’s not working

  • From an investment style perspective, growth outperformed the MSCI World Index. Value trailed the index and all were positive over the quarter.
  • All factors and the MSCI World Index were positive over the quarter, with quality and momentum outperforming the index. Dividends and low volatility trailed the index.
 

Yields fell this quarter. Long-term bonds outperformed short-term bonds. Government bonds outperformed corporate bonds. 

Relative bond performance 

 

   Bond yield 

down arrow graph icon

 

Both shorter and longer date bond yields fell over the quarter.

Yield on the Canada 2-year fell from 4.87% to 3.88%.
Canada 5-year fell from 4.25% to 3.17%.
Canada 10-year fell from 4.03% to 3.10%.
Canada long bond fell from 3.81% to 3.02%.

 
     
     
     
     
     

 


* Representative indexes are as follows: Canadian Equities – S&P/TSX Composite TR Index, U.S. Equities – S&P 500 TR Index, Emerging Markets – MSCI Emerging Markets GR Index, European Equities – MSCI Europe GR Index, Asian Equities – MSCI Pacific ex Japan GR Index, Japanese Equities – MSCI Japan GR Index. 

Source: Morningstar Research Inc. as of December 31, 2023. © 2023 Morningstar Research Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. 

Segregated Fund contracts are issued by The Empire Life Insurance Company (“Empire Life”). A description of the key features of the individual variable insurance contract is contained in the Information Folder for the product being considered. Any amount that is allocated to a Segregated Fund is invested at the risk of the contract owner and may increase or decrease in value. Past performance is no guarantee of future results. Please read the information folder, contract and fund facts before investing.

This article includes forward-looking information that is based on the opinions and views of Empire Life as of the date stated and is subject to change without notice. The information contained herein is for general purposes only and is not intended to be comprehensive investment advice. We strongly recommend that investors seek professional advice prior to making any investment decisions. Empire Life and its affiliates assume no responsibility for any reliance on or misuse or omissions of the information contained herein.

 

December 2023



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