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Jeff Herold
Financial market volatility continued in February led by a sharp decline and then a rebound in the price of oil. Equity markets tracked oil prices fairly closely, albeit with more muted moves. Oil plunged 22.5% from the end of January to February 11th, hitting an intra-day low of $26.05 per barrel. However, news that Saudi Arabia, a few other OPEC members, and Russia were considering capping their oil production at the levels attained in January prompted a strong recovery in oil prices that left them up 0.4% over the whole month. The S&P/TSX, the S&P 500, and the Morgan Stanley World Composite all fell between 6.5% and 7% as oil dropped. Once oil started rebounding, so too did equity markets as they finished the month with only small gains or losses. The safe haven characteristic of bonds was evident in February; bond prices rose and yields fell as oil and stocks plummeted, with some benchmark Canada Bond yields hitting all-time record lows. Once oil and stocks started to recover, bonds lost their glitter, their prices fell and yields rose. The FTSE TMX Canada Bond Universe returned a meagre 0.21% in the month, belying the volatility during the period. (more…)
Our investment management team is made up of engaged thought leaders. Get their latest commentary and stay informed of their frequent media interviews, all delivered to your inbox.