AGF Weekly Perspectives – Discipline is the bridge between goals and accomplishment
AGF Weekly Perspectives – Discipline is the bridge between goals and accomplishment


Hi, my name is Sanjay Luthra. I am an Associate Portfolio Manager at AGF
Investments. Last week, Canada’s team maintained strong
momentum at the Winter Olympics, and there
were emerging signs of stabilization in the financial markets. Volatility spiked earlier this month after
the January jobs report showed the largest increase in average hourly earnings since
2009. Adding to signs of an inflation pickup, last
week’s reported U.S. consumer prices rose by more than projected in January. A strong synchronized global economic recovery
is under way, with unemployment in a number of important economies reaching low levels. In this context, an increase in wages and
inflation is not surprising. While a modest pull-back was overdue, there
are good reasons not to be too bearish. We remain disciplined buyers. Fundamentally, little has changed. Earnings continue to grow at a double-digit
pace, and revisions ratios are trending higher. Global growth remains robust with the global
composite PMI at its highest in over three years. If stronger aggregate demand and rising capacity
utilization lead to a stronger-than-expected rise in global investment growth, thereby
lifting productivity growth, the current upswing could turn out even stronger and longer. As Jim Rohn quoted: “Discipline is the bridge
between goals and accomplishment”. Amidst the volatile markets, we believe the
success to outperform is to be invested in discipline that helps to deliver the best-in-class,
consistent and repeatable investment performance for long-term capital growth with downside
protection. Thanks for watching. I wish you all the best for the week ahead.

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