What lower interest rates mean for fixed income and equity investors

After months of speculation and anticipation, in June, the Bank of Canada (BoC) took the plunge and reduced interest rates. It eased interest rates again in July and is expected to do so three more times before the end of the year. When will the US Federal Reserve start to follow suit? Only time will tell.

So, with some central banks already lowering interest rates and others expected to start, what does this mean for fixed income and equity investors?

In the September edition of Market Spotlight, our investment professionals consider how fixed income and equity investments might respond to an environment of lowering interest rates. As you will see, generally speaking, a lower interest rate environment should be positive for equity markets and should help bonds reclaim their rightful place in a well-balanced investment portfolio.