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When a recession is coming, investors need to keep a level head

How should investors react to a looming market downturn? Don’t panic, says Prof. Sebastien Betermier, an Associate Professor of Finance at Desautels. This sounds simple enough, but it’s easier said than done.

Published: 28 Sep 2022

Alberta politician who is spreading conspiracy theories could become premier

Danielle Smith is running for the leadership of Alberta’s United Conservative Party, and could become Alberta’s next premier. But Smith is campaigning on a platform that includes internet conspiracy theories. In a newsletter, she cautioned that Canada’s currency could be replaced with an international common digital currency, and the federal government could use it to “punish and reward” Canadians.

Published: 16 Sep 2022

Inflation is a major challenge for seniors on fixed incomes

When food prices rise, seniors on fixed incomes pay a heavy price. Seniors living on federal pensions have lost $1,600 in purchasing power, according to Pierre Lynch, the president of the Association québécoise de défense des droits des personnes retraitées et préretraitées. And it’s difficult to predict when those costs could come down, says Associate Professor of Finance Sebastien Betermier.

Published: 7 Sep 2022

Countries with high debt and a reliance on imports could face tough times

Sri Lanka is facing down a liquidity crisis. It has $50 billion in debt to foreign creditors, but no foreign currency reserves. The country foreign currency was depleted when pandemic-related travel restrictions undermined its thriving tourism industry. It also imports many goods, and costs soared as energy prices rose.

Published: 25 Aug 2022

Higher interest rates are already packing a punch

Payments on variable rate mortgages have gone up, and house prices have gone down. We are already seeing the impact of higher interest rates, and we are not done yet, according to Prof. Sebastien Betermier. “I expect to see a continuation of what we are already seeing,” Betermier told CTV News.

Published: 2 Aug 2022

FIRM Labs seeks to make AI tools more accessible to individual investors

Artificial intelligence (AI) has changed the way the way that equities are managed – but it has mostly been used by institutions. Prof. Ruslan Goyenko wants to change that. Goyenko is the Scientific Director of Finance Innovation and Risk Management (FIRM) Labs, which brings together financial economists and computer scientists to develop AI-driven portfolio management models that it will distribute to the public.

Published: 12 Jul 2022

Persistent inflation could contribute to a recession, but there are steps that can take to ease the pain

The recovery from the pandemic created strong demand for products and services, but supply remained weak as a result of supply chain disruptions, labour shortages, and the rising cost of food and oil. Together, these factors have contributed to high inflation, which central banks are fighting by raising interest rates. But some of these factors are beyond the reach of central bank’s efforts, like rising energy prices caused by the war in Ukraine, said Prof.

Published: 6 Jul 2022

More efficient capital management could help pension funds strained by longer life expectancy

Canadians are living longer than ever. Life expectancy at retirement has increased by about four years since 1980. This creates a cash crunch for pension funds. Increasing current plan members contributions is one way to address this, but more efficient capital management can help too. Pension funds have a distinct advantage over other investors, argues Prof. Sebastien Betermier in Policy Options.

Published: 22 Jun 2022

Delve: Can Loyalty in Investor Relationships Calm the Competitive Disruption of ETFs?

On the surface, the Exchange Traded Fund or ETF is a relatively straightforward concept, but it has become a major disruptor in the sphere of money management. In the past few years, mutual fund managers started to also manage ETFs for their clients—a way to potentially alleviate competition, maintain client loyalty, and keep institutional money within a growing family of funds.

Published: 9 Jun 2022

Prof. Betermier lands new role as Director of ICPM

Sebastien Betermier, Associate Professor of Finance and Finance Area Coordinator at the Desautels Faculty of Management at McGill University has been appointed as the new Executive Director of The International Centre for Pension Management (ICPM).

Published: 8 Jun 2022

Investing experience can help navigate market downturns

Many young investors have never lived through a major market downturn, and some novices could overreact as markets fall, according to Sebastien Betermier, an Associate Professor of Finance at Desautels.

Published: 2 Jun 2022

Desautels’ event highlights innovative research and recognizes scholars

On Friday, May 13, members of the Desautels Faculty of Management gathered to celebrate the innovative and impactful research conducted by its scholars. 

Fifteen professors were on hand to deliver two-minute presentations of their most interesting and research.

Published: 20 May 2022

Canada’s largest pension plans are driving green development through real estate investments

The skyscrapers of Toronto’s financial district house Canada’s largest banks, and some of its most successful companies. The buildings themselves are largely owned by Canada’s largest pension funds, which have directly developed real estate across major Canadian cities.

Published: 11 May 2022

Supply chain disruptions caused inflation, and the war in Ukraine is making it worse

Inflation is up. Way up. In March 2022, Canada experienced its biggest increase in inflation in more than three decades. The oft-cited monthly inflation figure represents the rate of change in the consumer price index, and many consumers are already feeling the pinch in their pocketbooks.

But why is it happening? Inflation is typically caused by either increased consumer demand in a strong economy, or by supply shortages that drive prices higher.

Published: 4 May 2022

Prof. Sebastien Betermier talks investment strategies with Rational Reminder podcast

Stocks with high expected return appeal to many new investors, but can be exposed to high risks. Investors must consider how these risks can impact their overall financial situation, Prof. Sebastien Betermier tells the Rational Reminder podcast.

Published: 22 Apr 2022

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