If I were to tell you that there would still be some dispute about the US election on November 17th, you’d have scoffed. Not possible. If someone had told you back in April that we’d be having by far the highest Covid case counts in November, you’d have thought – not possible.
If I were to tell you back in March that we’d endure the worst health crisis of the last hundred years, compounded by the quickest-contracting economy on record, a lot of people would respond that it was time to cash in before facing the consequences of what could be interpreted as the worst looking prospects in our lifetime. Warning bells would be ringing. The crash is coming. Sell when you can. It could be your last chance to preserve your capital. Don’t wait.
If I were to tell you that after all those disruptions, the markets would be setting record HIGHS, most people would have laughed in my face.
Well, here we are. Who could’ve possibly predicted record highs based on this economic performance?
As it turns out the market and the economy don’t always travel in sync. Actually, quite the opposite. You always hear that expression: “the market has already taken that into account”. Apply that to our current situation.
The market bottomed out back in March when the full extent of the pandemic became known, long before the economic consequences were exposed.
The market is now soaring on the news that the political situation is stabilizing and the health crisis is sure to resolved by vaccines.
So while the economy and our society still have a long way to go to get through this, the market is already far ahead of the calendar on this.
Fund managers tend to be pretty smart. They don’t like to lose money. And they generally don’t.
This is a very long-winded way of saying that the future cannot be predicted accurately. We were dubious that a vaccine would even be on the horizon this quickly. That’s why we don’t bet on these developments. You plan around them. But most importantly, you don’t act rashly.
We feel terribly for the people who sold out in the spring. They not only sold low, they’re now going to have trouble getting back into a market that’s super hot. They did themselves no favours.
That’s what we’re here for. To smooth out the bumps in the road. That’s our role. And we’re proud of what we do on behalf of our clients. We help keep your investments on track, even when the world veers off course.
No, we’re still not out of the woods. But the clearing is in sight.
We encourage you to stay patient. Think how much things have changed in just the past nine months. More change lies ahead. While change causes a great deal of disruption and stress, it also creates unprecedented opportunities.
Just ask a company that makes hand sanitizer.
Hang in there. Stay Safe.
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This information has been prepared by Barbara & Eric Chong who are Financial advisor for Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Financial Advisor can open accounts only in the provinces in which they are registered. For more information about Investia, please consult the official website atwww.investia.ca