Equities continued to recover from the March lows. The AFINA actively-managed products had another solid month. Our top performers in July were Biogen (BIIB), H&R Block (HRB) and The Walt Disney Company (DIS). An overview of the performance of our actively-managed products is as follows:
|Instruments (% return)||July 2018||2018||2017||2016|
As of July 31, 2018. All figures are net of fees and other expenses. Past performance is not indicative of future results. Refer to https://www.afinacapital.com/legal/ for full details and disclosures.
(1) The benchmark represents a 50% weighting of the S&P 500 Total Return Index in Canadian dollars and a 50% weighting of the S&P/TSX Composite Total Return Index in Canadian dollars.
Monitoring the US yield curve for recession signs. While valuations are reasonable following the Q1/2018 correction, we continue to monitor the yield curve and specifically the 10-year versus 2-year US Treasury Yield Spread (see below). The shaded areas on the chart below represent US recessions. When the yield spread dips below 0% and short-term interest rates move higher than long-term rates (commonly known as an inverted yield curve), it is an excellent predictor of a bear market and US recession. We are not there yet and will continue to monitor this important leading indicator of economic activity.