Market Quote: Oil Prices, Dividend Stocks, U.S. Treasuries
Author: The editor's desk
September 29, 2023
Members of AGF’s Investment Management Team weigh in on the week that was in global financial markets.
“The price of West Texas Intermediate (WTI) crude oil climbed above US$95 a barrel earlier this week and seems poised to break through US$100 a barrel for the first time in more than a year despite wavering a bit in recent days. In turn, it’s no surprise that the energy sector was a leading performer in both Canada and the U.S. equity markets. The trajectory and sentiment for energy stocks remains seemingly strong.”
Paying Attention to Dividend Payers
“Equity markets continue to be defined by extreme dislocations that have become more prevalent in recent years. In part, this may be creating an opportunity in high-quality, high-paying dividend stocks that lately have performed poorly alongside bonds. Meanwhile, some stocks in defensive sectors of the equity market have uncharacteristically underperformed despite having stable business models. Investors might also consider paying closer attention to these names, which have performed well in previous market cycles, generally speaking.”
“Government bonds have had a rough week, with longer-dated maturity yields racing higher while the front end of the yield curve (i.e. shorter-dated maturities) remained relatively unchanged. Moody’s, the credit rating agency, got the ball rolling with a warning about the negative credit impact of a United States government shutdown and combined with concerns about how much debt would need to be issued to drive yields above the significant technical level of 4.5% for the 10-year U.S. Treasury note.”
For full bios, please visit our contributor’s page.
The views expressed in this blog are those of the author and do not necessarily represent the opinions of AGF, its subsidiaries or any of its affiliated companies, funds, or investment strategies.
Commentary and data sourced from Bloomberg, Reuters and company reports unless otherwise noted. The commentaries contained herein are provided as a general source of information based on information available as of September 28, 2023 and are not intended to be comprehensive investment advice applicable to the circumstances of the individual. Every effort has been made to ensure accuracy in these commentaries at the time of publication, however, accuracy cannot be guaranteed. Market conditions may change and AGF Investments accepts no responsibility for individual investment decisions arising from the use or reliance on the information contained here.
This document may contain forward-looking information that reflects our current expectations or forecasts of future events. Forward-looking information is inherently subject to, among other things, risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed herein.
AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Investments LLC (AGFUS) and AGF International Advisors Company Limited (AGFIA). AGFA and AGFUS are registered advisors in the U.S. AGFI is registered as a portfolio manager across Canadian securities commissions. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. The subsidiaries that form AGF Investments manage a variety of mandates comprised of equity, fixed income and balanced assets.\
® ™ The “AGF” logo and all associated trademarks are registered trademarks or trademarks of AGF Management Limited and used under licence.
About AGF Management Limited
Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.
For further information, please visit AGF.com.
© 2023 AGF Management Limited. All rights reserved.