Echelon Wealth

Is inflation over? From highs Canada CPI has gone from 8.1% to 2.7%, UK from 11% to 2.3%, Japan from 4.3% to 2.5%, Eurozone 10% to 2.6% and the US from 9% to 3.3%. The improvement in U.S. data recently was certainly welcome inflation news.

But inflation is complex with some factors moving slowly and some faster. Notably, economic activity has picked up in 2024 which may slow the decent. The good news, inflation and markets are starting to react more to economic data and less to reverberations from pandemic influenced behaviors.

Click here to read more:https://www.echelonpartners.com/is-it-over

Is it over? We are a client-centred firm with a collaborative and respectful culture that delivers a history of excellence in producing results while protecting our clients. We aim to build lifetime relationships and deliver superior service. We are looking for qualified Investment Advisors to join our team.

We're thrilled to share the incredible impact of our 2023 Impact Day campaign in support of Hope for Dementia.

Thanks to the proceeds from our campaign, the "Healthy Food. Healthy Brain." program is bringing nutritious food baskets to vulnerable seniors on special occasions throughout 2024. With your support, Hope for Dementia aims to reach over 3,000 individuals by distributing 600 baskets of brain-healthy meals along with valuable information on nutrition and cognitive health.

Together with Hope For Dementia, we’re making a real difference in the fight against dementia and other cognitive disorders.

As equity/bond correlations have moved into a higher regime, investors have been stretching to find different sources of diversification for portfolios. Bonds still work even in higher correlation environments, albeit with a bit less efficacy (good table with 75 years of evidence). The silver lining is higher yields raise the expected return of bonds.

Still, diversifying your diversifiers is prudent in a higher correlated world and there are many options. We share a 'crisis alpha' lens to demonstrate how different diversifiers have faired during past periods of market stress (using alternative index performance data). After all, that is when you actually want diversification benefits.

One cautionary note is there is usually a lot of time between each crisis. Given many of these diversifiers suffer more modest returns over time, overuse may result in a smoother ride to a lower-end wealth point. Lower volatility can't be spent in retirement.

Bonds still work, and slightly more defensive diversifiers are clearly warranted in a positively correlated world - everything in moderation.

Click here to read more: https://www.echelonpartners.com/crisis-alpha

Crisis Alpha We are a client-centred firm with a collaborative and respectful culture that delivers a history of excellence in producing results while protecting our clients. We aim to build lifetime relationships and deliver superior service. We are looking for qualified Investment Advisors to join our team.

Recession risk has certainly faded and economic growth has firmed somewhat. Is this the start of an accelerating global economy? This ain't that. The consumer appears to be weakening and much of the other economic improvement appears to be a bounce off depressed manufacturing/global trade activity.

Also included is a look at dividends given how well cyclical yield has performed vs interest rate sensitives. This divergence is now pretty extreme and could be setting the table for a reversal.

Click here to read more: https://www.echelonpartners.com/this-ain-t-that

This Ain't That We are a client-centred firm with a collaborative and respectful culture that delivers a history of excellence in producing results while protecting our clients. We aim to build lifetime relationships and deliver superior service. We are looking for qualified Investment Advisors to join our team.

Markets are very calm. Looking at measures of volatility, the stock market, bond market and even currency markets are all reading historically low volatility. So is it the calm before the storm or just more calmness ahead? If the seasons are any indication, the summer months tend to be pretty quiet. Not always of course. Then we have election risk, which hasn't crept into the markets yet…

Click here to read more: https://www.echelonpartners.com/the-calm-before-the-calm

The Calm Before the Calm We are a client-centred firm with a collaborative and respectful culture that delivers a history of excellence in producing results while protecting our clients. We aim to build lifetime relationships and deliver superior service. We are looking for qualified Investment Advisors to join our team.

Over the past couple of weeks, any softer-than-expected economic data has been good news, lifting markets. When higher yields and inflation are the biggest concerns this makes sense. But it will only last for so long, and now we are seeing weakness beneath the surface including for the almighty U.S. consumer. A number of canaries are flashing warning signals that the consumer may be running out of steam, including their dining habits.

Click here to read more: https://www.echelonpartners.com/more-bad-news-s-il-vous-plait

More Bad News S'Il Vous Plaît We are a client-centred firm with a collaborative and respectful culture that delivers a history of excellence in producing results while protecting our clients. We aim to build lifetime relationships and deliver superior service. We are looking for qualified Investment Advisors to join our team.

This edition we dive into emerging markets, both the good and bad. Click here to read more: https://www.echelonpartners.com/is-it-time-for-emerging-markets

Is It Time for Emerging Markets We are a client-centred firm with a collaborative and respectful culture that delivers a history of excellence in producing results while protecting our clients. We aim to build lifetime relationships and deliver superior service. We are looking for qualified Investment Advisors to join our team.

There is lots of news for both the bulls and bears. Improving economic data is pushing down recession risk globally, and spurring some positive earnings momentum. But this better economic data is slowing progress on the inflation front and lifting yields higher.

In this edition, we have two topics: an analysis on why this cycle is so different and significant divergence among dividend paying names.

Click here to read more: https://www.echelonpartners.com/lots-of-bulls-bears

Lots of Bulls & Bears We are a client-centred firm with a collaborative and respectful culture that delivers a history of excellence in producing results while protecting our clients. We aim to build lifetime relationships and deliver superior service. We are looking for qualified Investment Advisors to join our team.

This earnings season has certainly been a good one with a high frequency of beats by a good magnitude. Rising PMI data, better economic data, some more inflation (that is good for earnings). Perhaps forward revisions will start to turn up and help justify the market advance of the past few months that has been all multiple expansion.

Click here to read more: https://www.echelonpartners.com/earnings-optimism

Earnings Optimism We are a client-centred firm with a collaborative and respectful culture that delivers a history of excellence in producing results while protecting our clients. We aim to build lifetime relationships and deliver superior service. We are looking for qualified Investment Advisors to join our team.

Honoring the backbone of our team this Administrative Professionals Day. Your hard work and dedication keep our business moving forward seamlessly. Thank you for all that you do!

Energy stocks have certainly been on the move this year, with the sector leading the TSX.

Click here to read more: https://www.echelonpartners.com/energy-stars-align

Energy Stars Align We are a client-centred firm with a collaborative and respectful culture that delivers a history of excellence in producing results while protecting our clients. We aim to build lifetime relationships and deliver superior service. We are looking for qualified Investment Advisors to join our team.