Star Trek, 2001: A Space Odyssey, The Terminator, Blade Runner, The Matrix—artificial intelligence (A.I.) has been a recurring science fiction theme for decades. But in fact, A.I. has come to the forefront of many discussions around scientific advances. Robotics, deep-learning models, smart cars, ChatGPT, and so on—where is this technology headed? We look at some of the applications of A.I.:

• caring for the elderly by using sympathetic robots

• using facial recognition software as the main way to identify you

• improving customer experience with personalized algorithms

• benefitting from AI—areas that may be worth watching

… and more.

What we can do with A.I may be nearly unfathomable. Maybe we’ll even create artificially intelligent chocolate chips someday—they’d make one smart cookie.

To bond or not to bond? That is the question. Whether ‘tis nobler in the mind to invest in bonds or guaranteed interest certificates (GICs) preoccupies many investors. Where would William Shakespeare put his money and why? Who knows? But we have reasons for believing bonds may be the better option for today’s investors:

• Looking back over past performance of Canadian bonds, they usually outperform GICs.

• Historically, the outperformance of Canadian bonds is sizably higher than GICs per year.

• Reinvestment risk could give lower returns from GICs.

There are more things in bonds and GICs than are dreamt of in your philosophy—let’s discuss them.

A new year has arrived. Many investors are breathing a collective sigh of relief that 2022 is done and are looking for indicators of better investment opportunities and returns in 2023. Financial needles point toward shifting economic conditions, but what types of changes will we see?

• What are we looking at to help determine what the coming year may bring?

• Will a recession happen? How bad could it be?

• Where is inflation going? And what will central banks do in response?

• Does it look like market volatility is settling down?

• Are equities or fixed income looking more attractive?

Gauging the markets isn’t an exact science. But the more we learn, the more likely we’ll recognize the signs.

Cold and flu season struck and early and hard in 2022. It has also been a somewhat sick time in the markets this past year. Could 2023 give investors a chance to start easing the sniffles, coughs, aches, and pains of the volatility we’ve experienced? Let’s use our stethoscopes and thermometers to examine three phases of potential opportunity in bonds moving forward:

• the sweet spot—bond yields

• duration is your friend—longer-duration and higher-quality fixed-income instruments

• take on risk—when markets have fully priced in a recession

Hot tea with lemon, a warm blanket, and a good investment strategy—just a few things that can make you feel better about your road to recovery.

This special episode features a discussion with our soon-retiring colleague and friend, Dan Janis, Co-Head of Global Multi-Sector Fixed Income at Manulife Investment Management. We get insights into Danny’s life, career, and team, and what he’s discovered about being a good advisor and sound money manager.

• What has Dan learned about managing investments during his professional career?

• Is there something Dan wishes he could tell his 10-year-old self, given the opportunity?

• Which key skills should an advisor develop?

• What’s the best thing advisors can do for their clients?

Retirement isn’t the end of the road, it’s the beginning of the open highway.

Episode 77: Eyeing the bond markets

Unusually painful performance in fixed-income investments this past year seems to be blurring investors’ vision. We see potential opportunity in current and future economic conditions. Is fixed income worth a second look? Let’s turn our sight to some financial factors related to bonds:

• how a recession can affect the fixed-income market

• where we are in the current bear market cycle

• U.S. Federal Reserve’s interest-rate cycle to combat inflation

• historical relationship between bonds and equities

• yields vs returns

… and more.

And why are some people eyeballing used cars lately?

For children, school has begun again. For investors, school is never really out. What subjects should you pay attention to? Will the bell ring to end to the unexpected market volatility of 2022? Our resident Capital Markets Strategy instructors have written some relevant topics on their chalkboard. They cover:

• rising inflation and interest rates

• economic slowdown

• earnings being priced into the markets

• possibility of a recession

• investing over the coming months

And in this episode, we introduce a new segment on what’s making recent media headlines.

Class is in session.

With in-person interactions once again becoming the norm, this summer, the Capital Markets Strategy team has been criss-crossing the country, meeting with advisors and clients, and speaking at events. We’re truly enjoying the face-to-face interaction and responding to inquiries from people we meet. Wherever we go, some common questions are popping up—questions like:

• Has weak market performance already been priced in?

• How does the second half of 2022 look when compared to historical downturns?

• Will we see a recession, and when?

• How do bear markets play out over time?

Let’s delve into these and other questions we’ve been getting.

Bear markets aren’t new—15 have happened since 1950—and some have been worse than others. What’s happening with the current economy and market volatility, and when will it change? Previous selloffs and downturns may hold a clue to what we can expect for the rest of 2022. We take a look at:

• what we can learn from past bear markets

• the chance of a recession

• effects of inflation and central bank actions

• bond yields and opportunities

• options investors may have to rebalance their portfolios.

Bears of all sizes appear … but how long do they hang around?

Fixed-income markets have been going down a rocky road so far in 2022. Are we in for a continued rough ride? Or will the dirt path become a smoother highway for bonds in the near future? Roshan Thiru, Head of Canadian Fixed Income at Manulife Investment Management, joins the Capital Markets Strategy team to discuss:

• bond activity and yields

• what to look for with fixed-income investments

• record-high inflation and its effects

• maintaining a balanced portfolio

… and more.

Buckle up.