“The market doesn’t tell you why it did something,” says David Kaufman, president of Westcourt Capital Corp., a Toronto-based portfolio manager specializing in traditional and alternative investment. In the meantime, headlines scream that one event or another will weigh down on portfolios. Article content Much of a portfolio’s performance in the long term is driven more by macro-economic factors and less by stock-specific factors. This advertisement has not loaded yet, but your article continues below. Both factors lead to weaker aggregate demand, which leads to slower economic growth and, ultimately, poorer investment returns - something investors are going to have to get used to unless something happens to turn things around. ![]() “Persistent weak global growth is intensifying,” says Bruce Cooper, TD Asset Management’s chief investment officer, chalking that up to aging demographics in both the developed world and China as well as high levels of debt, whether that’s government, corporate or consumer, in many parts of the world. Federal Reserve, continuing its trend toward tighter monetary policy as the American economy recovers, even if few other economies are showing anything more than weak signs of life. Further out on the horizon loom as many as four rate hikes by the U.S. The S&P/TSX Composite Index, meanwhile, fell into a bear market, having dropped 20% since its September 2014 high. ![]() In the first few trading days of January, contagion from China’s latest stock-market tumbles wiped out US$4 trillion in equity value worldwide. Unfortunately, 2016 didn’t start off any better.
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