Ivy Quarterly Review

Occasionally an investment manager writes so well and with such insight that I want to share it with clients.  This is the case with the current Mackenzie Ivy Quarterly Review, in which the Ivy managers discuss their broad views about the current state of the world economy and investment markets.  Among other things, they discuss how:

• Investors pulled money out of equity mutual funds for several years running, even while the equity markets was rising strongly, and now that a strong gain can be clearly seen in the rearview mirror, investors are starting to put money in equities once again.  This type of behaviour is consistent with past cycles and is counter-productive.
• Central banks in the U.S. and elsewhere have forced interest rates below normal levels and inflated the money supply, distorting healthy price mechanisms and making it harder to identify good investments.
• Because of central bank interventions, economic growth is likely to stay below average for some time, as economies heal from the damages caused by intervention.
• The Ivy team is focused on investing in superior businesses able to withstand economic cycles and believe the Ivy funds will continue to offer superior results through full market cycles.

For those of you who are interested in more detail on such topics, you may read the entire commentary on the Mackenzie Investments website link or go to

http://www.mackenzieinvestments.com/eprise/main/MF/DocLib/Public/ivy-quarterly-en.pdf