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The value of a company’s stock stems in large part from its ability to compound earnings growth. That’s why we try to identify broad secular industry trends that will drive multi-year growth for the company. Like the advent of the internet, the adoption of generative artificial intelligence (GenAI) promises to deliver productivity gains across the economy. Both of these represent a breakthrough underlying technology that allows workers to become more efficient in their everyday tasks.

No more pundits, attack ads or mudslinging.  Goodbye polls and blessedly, good riddance to betting markets and political sentiment driving markets - it's back to business. In the short-term markets are driven by sentiment, while in the long run markets are driven by something you can measure and account for - financial results.

Now that we know Donald Trump will be the next President of the United States, what does it mean for financial markets?  Are interest rates headed higher? What does this mean for equity markets? What about other assets and global impact?

Taken in isolation, the performance of the six largest Canadian banks (the Big 6) has been solid this year, with their stocks up 34% since the October 2023 bottom. However, there are a couple of observations that should be brought forward.

Canadian banks have been plagued by weak underlying fundamentals for the last two years: high  expense growth and lower capital markets related revenue (CMRR) offset the benefit of rising rates. This resulted in several quarters of negative operating leverage that, combined with the normalization in credit losses, has weighed on the stock performance of Canadian banks.

However, Q2 marked the first quarter of positive operating leverage, which was driven by improving revenue growth and slowing expense growth (from last year’s cost initiatives and moderating inflation). Read on for more on our perspective on Canadian Banks.

Over the past decade we have been on quite the investment management journey together — one that has challenged the orthodoxy of the 60/40 portfolio. Instead, recognizing certain deficiencies in the typical “balanced” portfolio, we have favoured an adaptive approach to investment strategy and an enhanced approach to asset allocation.

Today we call this approach the TD Wealth Strategy Process, and one of the major differentiators has been the inclusion of “alternative” investments, like hedged strategies, private capital, commodities, currencies and real assets.

In this special edition of Perspectives, we have tasked two of our best analysts, Shezhan Shariff and Neelarjo Rakshit, with shedding light on Private Capital, the lesser-known of these asset classes. Read on.

Our report includes an in-depth overview of the biosimilar landscape and growth outlook for the biosimilar market. We believe the biosimilar market can grow from $10B today to $125B by 2033, fuelled by brand biologics loss of exclusivity (LOEs). We see opportunities for manufacturers, distributors, and pharmacy benefit managers (PBMs) to benefit. Keys to a sustainable biosimilar market include adoption of leading biosimilars and interchangeability on the pharmacy side, and physician education on the medical side.

We are publishing our first-ever Enterprise Software handbook, a deep dive into all aspects of the market with a primary focus on SaaS, Apps, Data & Analytics, IT, Software, and Development & Operations (DevOps). We analyze historical returns, valuation trends, interest rate correlation, M&A activity, market growth forecasts, market share trends, operational KPIs, business model fundamentals, architectural shifts and much more.