Monthly Spotlight: Global Investing

Why It Matters

The shift signals a strategic re‑allocation opportunity for Canadian advisors seeking diversification and higher returns. India’s growth trajectory offers a compelling emerging‑market play amid global energy uncertainties.

Key Takeaways

• Global equities beat US indices since early 2024
• 12‑year lag ended due to valuation compression
• Forstrong cites cheaper currencies and earnings growth
• BMO CIO highlights Indian market momentum despite energy shocks
• Advisors urged to re‑balance toward diversified global exposure

Pulse Analysis

Global markets have re‑emerged as a focal point for Canadian wealth professionals after a 12‑year lull, driven by a convergence of macro‑economic factors. Lower global valuations, easing monetary policy in major economies, and a depreciation of the U.S. dollar have narrowed the price gap with North American equities. This environment has reignited interest in cross‑border diversification, prompting advisors to reassess portfolio weightings and consider the risk‑adjusted benefits of broader exposure.

Tyler Mordy, CEO and CIO of Forstrong Global, attributes the recent outperformance to a blend of cheaper foreign currencies and stronger earnings growth overseas. He notes that many international sectors, especially technology and consumer discretionary, have benefited from a reset in price‑to‑earnings multiples, creating attractive entry points for investors. Mordy also emphasizes the importance of disciplined rebalancing, urging advisors to integrate global assets incrementally to capture upside while managing currency risk.

Meanwhile, BMO’s Chief Investment Officer Sadiq Adatia highlights India as a standout opportunity despite ongoing energy shocks that have rattled other markets. After a recent on‑the‑ground visit, Adatia points to robust domestic demand, fiscal reforms, and a youthful demographic as catalysts for sustained momentum. He cautions that energy price volatility remains a tail‑risk, but argues that the country's resilient growth outlook justifies a meaningful allocation for Canadian portfolios seeking both diversification and return potential.