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September 2008 Outlook

September 18, 2008. Do the extremes of the past week portend the end of the beginning or the beginning of the end of the current bear market?

The financial crisis has reached new extremes over the past month. The recent panic that has spread over the past week is a good sign that capitulation is near. Looking at past financial crises, government intervention was required to right the ship, but the difference this time is the magnitude of the problem and the duration of the crisis. Will the world’s central banks be successful at restoring confidence and reducing risk premiums within financial markets?

Please download your copy of the September Outlook by clicking on the link above.

August 2008 Outlook

August 21, 2008. There is not a lot to celebrate with the one-year anniversary of the global credit/liquidity crisis upon us. Stock markets have performed poorly with prices moving to the downside while corporate bond spreads have widened considerably as investors have been jostled by one crisis after another.

The economic outlook remains unappealing, but “have markets already discounted all the bad news?

Please download your copy of the August Outlook by clicking on the link above.

July 2008 Outlook

July 15, 2008. A recession now appears just around the corner and the whole world is feeling it. The situation is being exacerbated by rising inflation expectations which have precipitated a shift in monetary policy. Consumers are cutting back on expenditures which will lead to a retrenchment by business. The question now is not if there will be a recession, but more so what the magnitude and duration of the recession will be.

Please download your copy of the July Outlook by clicking on the link above.

Multi-Boutique Structure Allows CC&L to Address Different Markets — Investment Executive [pdf]

Investment Executive speaks with Mike Freund and Warren Stoddart about Connor, Clark & Lunn Financial Group's multi-boutique structure. Please click on the link above to read the article.

CC&L’s Multi-Boutique Approach Attracts Talent — Financial Post

Recently, Mike Freund and Warren Stoddart discussed the advantages of the multi-boutique structure of the Connor, Clark & Lunn Financial Group with the Financial Post. Please click on the link above to read the article.

June 2008 Outlook

June 17, 2008. Inflation seems to be on everybody’s mind these days, with some making their argument from a bullish point of view, and others from a bearish point of view. The bulls like to point out that inflation has been well contained at relatively low levels over the past decade. The bears like to remind us that the factors causing that to be true are losing their potency. Like every good fight, there are two sides with no clear winner at this point. The bottom line is that no matter how you look at it, inflation is an issue.

Please download your copy of the June Outlook by clicking on the link above.

May 2008 Outlook

May 7, 2008. The American consumer may be down, but don’t count them out! For nearly two decades it has not paid to bet against the US consumer. Throughout the 1990s and into this century American consumers have consistently spent more than they earned. Now, falling home prices, uncertain employment prospects and skyrocketing food and energy prices are taking a heavy toll on consumer attitudes. The question is, at what point will the consumer be tapped out?

Please download your copy of the May Outlook by clicking on the link above.

April 2008 Outlook

April 16, 2008. Predicting a market bottom and catching a falling knife are pretty much the same thing – dangerous. Keeping this in mind, we nevertheless increased our client’s balanced fund exposure to equities in mid-March because the conditions were ripe for setting at least a temporary market bottom. April‘s newsletter takes a look at the problems that may yet surface and our assessment of the risk/reward balance.

Please download your copy of the April Outlook by clicking on the link above.

March 2008 Outlook

March 19, 2008. “It’s the economy stupid” was the central theme or mantra of another Clinton presidential candidate some years ago, and while this theme may once again dominate the political landscape, financial markets remain captivated by the ongoing credit crisis. For investors it is not really about the economy, “it’s solvency stupid”.

Please download your copy of the March Outlook by clicking on the link above.

February 2008 Outlook

February 21, 2008. As is our custom each February, this issue of Outlook is dedicated to providing an annual update on developments at Connor, Clark & Lunn Investment Management. In addition, we are taking this opportunity to feature our Fundamental Canadian Equity team, including providing a snapshot of their investment process and the range of portfolios that they manage.

Please download your copy of the February Outlook by clicking on the link above.

Forecast 2008

As investors, pundits and forecasters sort through all the current economic and market data and weigh all the evidence, they appear to be equally divided as to whether the “glass is half empty” or the “glass is half full”!

The half empty crowd sees volatility rising dramatically, stock prices under pressure, corporate bond spreads widening, the banking industry experiencing huge write-downs, solvency issues surfacing and the likelihood of a US recession mounting.

On the other hand, the half full side is focused on the stimulative actions of central bankers, the US government's support package, the continued growth of the developing economies and the fact that global inflation remains relatively benign.

For a detailed review of the current situation and our capital markets forecast for the coming year, please click on the link above.

January 2008 Outlook

January 10, 2008. In our 2007 Forecast we focused on how the global economy was evolving, noting that it had become much more diversified and less vulnerable to systematic shocks. We also raised concerns that along with increased economic stability, investors were reaching for more return by taking more risk, while trying to mitigate their increased exposures by using derivative strategies. Little did we know how crucial a factor this was going to be in terms of how financial markets would perform, especially in the latter half of 2007!

Please download your copy of the January Outlook by clicking on the link above.

December 2007 Outlook

December 19, 2007. “Houston – we have a problem” was our lead banner for our September Outlook. Unfortunately, not much has changed since we penned that piece in terms of market volatility and the underlying reasons for the turmoil. In fact, as we enter the fifth month of the current credit crisis, arguably things are worse now than they were when credit markets first seized-up. This has come about in spite of the fact that the US Federal Reserve, the Bank of Canada and the Bank of England have all lowered interest rates while at the same time injecting massive amounts of liquidity into the system along with the European Central Bank.

Please download your copy of the December Outlook by clicking on the link above.

November 2007 Outlook

November 19, 2007. Currency and credit markets are calling the tune and have unnerved not only currency traders but also equity investors. Fears of an outright collapse in the US dollar due to America's need to finance its huge current account deficit, at a time when US Treasury yields are dropping across the whole yield curve, have renewed concerns that the US economy will fall into recession. At the same time a significant tightening in credit standards due to the subprime mortgage and asset-backed commercial paper (ABCP) crisis is exerting further pressure on an already weakened US economy. Do these factors spell the end of the current bull market for equities? This month's Outlook explores these and other related issues.

Please download your copy of the November Outlook by clicking on the link above.

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