Month in Review - September 2022
September was another volatile month, with central banks continuing to create volatility as a direct result of the mistakes they have made over the past 15 years, which we will explain below. The S&P 500 fell 9.3% in USD but only fell 4.8% in CAD (due to a 4.5% gain in the USD vs CAD), while the TSX Composite fell 4.2%.
The bond market continues to be incredibly volatile, too volatile for the safety portion of a portfolio, falling 1.5% until September 27th, and then rallying 1.9% on September 28th. On the 28th, the Bank of England capitulated and announced that it was going into the bond market to buy British bonds until mid-October, seemingly to save British pension funds that were suffering massive losses on their exposure to bonds. This action was taken even when the Bank of England expects inflation in Britain to remain in the double digits over the next year. The result was that the Canadian Universe Bond Index finished the month down 0.7%.