GLC recommends investors should take neutral stance with a tilt to favour Canadian equities.
Bond yields have declined to such an extent that incremental returns moving forward will be modest. Fixed income remains attractive as a risk-mitigation tool. GLC recommends a neutral weight. GLC’s base-case scenario calls for small enough increases in bond yields that they forecast a further total bond market return of 0.5 per cent for the remainder of 2019.
GLC recommends broad and diversified geographic and sector allocations, with a slight equity overweight toward Canada. They recommend neutral exposure to U.S. and EAFE equities and recommend a low-to-neutral weight in Emerging Markets.
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