Fund Library News Wire
| Friday, October 05, 2018
By Mike Keerma
The yield on the 10-year U.S. Treasury note rose to 3.22% on Friday,
continuing a bond selloff, as investors reacted to an ultra-low 3.7%
unemployment rate and an annual 2.8% hourly wage gain, both indicators
signaling continuing strength in the underlying U.S. economy, solidifying
expectations of another rate hike by the U.S. Federal Reserve Board before
year-end. Lower-than-expected job creation of 134,000 new payrolls in
September was attributed to temporary labour market distortions in the wake
of Hurricane Florence. North of the border, Statistics Canada’s monthly
Labour Force Survey showed a gain of 63,000 jobs in September, continuing a
recent volatile trend in monthly jobs data. Average hourly wage growth
edged down to 2.2% in the month from 2.6% in August, while the unemployment
rate ticked down to 5.9% from 6.0%. With investors selling equities in
lockstep with U.S. markets, Toronto’s
S&P/TSX Composite Index
consequently posted a 0.8% decline on the week, despite a 1.2% gain in the
WTI crude oil
and a 1.0% uptick in the price of
gold. The big blue-chip
S&P 500 Composite Index
retreated 1.0%. The
Nasdaq Composite Index
lost the most ground on the week, dropping 3.2%, driven mainly by losses in
high-growth technology and Internet issues.
* Hamilton Capital launches bank ETF.
Hamilton Capital Partners Inc.
this past week debuted its
Hamilton Capital Canadian Bank Dynamic-Weight ETF (TSX: HCB), investing in Canadian banks and using a rules-based “mean reversion”
portfolio rebalancing methodology in an effort to improve the return
potential. As for portfolio strategy, Hamilton stated in a release, “HCB
will seek to achieve its investment objective by applying a dynamic
re-weighting strategy to a portfolio of the six largest Canadian banks.
Each month, the portfolio will overweight the three most oversold banks
from the prior month and underweight the three most overbought.”
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