Markets at glance

3 Apr 2025 | Your money

Markets at glance
To help you better understand the performance of funds presented in your quarterly statement, Bâtirente’s Investment Strategy Manager, Jean-François Dumais*, shares the economic and market highlights of 2025’s first quarter.

ECONOMY

Tariffs, economic growth and inflation The Trump administration’s threats to impose tariffs on their commercial partners’ exports to the US have created uncertainty about what’s to come in terms of economic growth and inflation. If these tariffs are implemented, global economic growth could be weaker than previously expected. Furthermore, inflation might remain high or even increase, making it difficult for central banks to continue their key rate cut cycle. The global economy may then find itself in the grip of a stagflation episode, characterized by economic stagnation and persistent inflation. A recession could ensue, bringing many job losses.

MARKETS

Equity The above-described economic conditions led to varying results, depending on the region. On the one hand, the MSCI All Country World Index recorded a -1.3% return (in Canadian dollars), which is attributed to the difficult performance of US securities related to artificial intelligence (the Magnificent Seven). On the other hand, Canada’s main index, the S&P/TSX, posted a positive return of 1.5%, backed primarily by the strong results from securities related to gold and oil. Bonds Fears of an economic slowdown sparked a fall in bond yields. In periods of uncertainty, investors often turn to safe-haven assets (those considered less risky). Consequently, the FTSE Canada Universe Bond Index saw a positive return of 2.0%.

2025 OUTLOOK

Volatility expected Financial markets’ reactions indicate that Donald Trump’s presidency could bring volatility in the coming years. Determining which asset classes will be favoured in this context will therefore be a challenge. That’s why maintaining diversification across various asset classes and regions is crucial to successfully navigate through this turbulence. What’s important to remember is that Bâtirente funds are designed to provide a high degree of diversification so you can weather a range of economic scenarios. In such a volatile context, the main thing is to stay focused on your long-term financial goals and make decisions according to your specific investor profile. When markets are weak, investing on a regular basis helps you take advantage of potential downturns and profit from them once markets recover. *Jean-François Dumais has worked as an Investment Strategy Manager at Bâtirente since 2019. Along with a Master of Business Administration (MBA) degree (Finance specialization). He has over 20 years’ experience in financial markets.

To help you better understand the performance of funds presented in your quarterly statement, Bâtirente’s Investment Strategy Manager, Jean-François Dumais*, shares the economic and market highlights of 2025’s first quarter.

ECONOMY

Tariffs, economic growth and inflation
The Trump administration’s threats to impose tariffs on their commercial partners’ exports to the US have created uncertainty about what’s to come in terms of economic growth and inflation.

If these tariffs are implemented, global economic growth could be weaker than previously expected. Furthermore, inflation might remain high or even increase, making it difficult for central banks to continue their key rate cut cycle.

The global economy may then find itself in the grip of a stagflation episode, characterized by economic stagnation and persistent inflation. A recession could ensue, bringing many job losses.

MARKETS

Equity
The above-described economic conditions led to varying results, depending on the region. On the one hand, the MSCI All Country World Index recorded a -1.3% return (in Canadian dollars), which is attributed to the difficult performance of US securities related to artificial intelligence (the Magnificent Seven). On the other hand, Canada’s main index, the S&P/TSX, posted a positive return of 1.5%, backed primarily by the strong results from securities related to gold and oil.

Bonds
Fears of an economic slowdown sparked a fall in bond yields. In periods of uncertainty, investors often turn to safe-haven assets (those considered less risky). Consequently, the FTSE Canada Universe Bond Index saw a positive return of 2.0%.

2025 OUTLOOK

Volatility expected
Financial markets’ reactions indicate that Donald Trump’s presidency could bring volatility in the coming years. Determining which asset classes will be favoured in this context will therefore be a challenge. That’s why maintaining diversification across various asset classes and regions is crucial to successfully navigate through this turbulence. What’s important to remember is that Bâtirente funds are designed to provide a high degree of diversification so you can weather a range of economic scenarios.

In such a volatile context, the main thing is to stay focused on your long-term financial goals and make decisions according to your specific investor profile. When markets are weak, investing on a regular basis helps you take advantage of potential downturns and profit from them once markets recover.

*Jean-François Dumais has worked as an Investment Strategy Manager at Bâtirente since 2019. Along with a Master of Business Administration (MBA) degree (Finance specialization). He has over 20 years’ experience in financial markets.

Share This