gETTING TO THE HEART OF YOUR FINANCES

COVID-19

​

The spread of the Corona virus also known as COVID-19 is having a direct impact on the economy and the markets including our everyday lives. We must remember that during these times there are three options we can exercise; Buy, Sell, Hold.  Of course, no one has a crystal ball. We understand that it is very difficult when there is so much fear in the world around us. We also want you to know that we are here and open for conversation.

That being said, we wanted to provide you, the investor, with information and an outlook from top economists and professional money managers at leading investment firms throughout the globe. To find out first hand not only what their thoughts are but how they are dealing with these uncertainties and what we as investors should be doing in times of volatility such as this.

One of the biggest concerns that is being noted by Vanguard is the uncertainty surrounding the virus. Questions that have impact are; how far will the virus spread, how long will it last, how much fear will this have on travel, consumer spending, manufacturing, trade and what actions will the government take to stop the spread of the virus and boost growth. Most conclude; “The net effects won’t become clear for at least several months”.

At the moment, the consensus from three portfolio managers at Fidelity is that there are likely to be short-term market implications – but in the long term, this may be remembered as a buying opportunity.

Sun Life Global Investments makes a clear point after studying the reactions of past epidemics. The market sold off sharply but then regained its previous high after the outbreak peaked. (see chart below.)

​

​

​​

​

​

​

​

​

​

​

​

​

​

Sources: Centre for Disease Control; World Health Organization; Bloomberg. Data as of February 25, 2020.

With all this said, some key takeaways are;

• uncertainty is a constant, downturns happen frequently however setbacks are typically followed by recoveries

• stay disciplined

• plan for a variety of markets

• continue to work with your advisor to determine a strategy that best fits your risk tolerance

What should you the investor do about it?

Professional money managers advise investors to remain focused on their long term goals, to ensure their portfolio is balanced across asset classes and diversified within them, in an appropriate combination for their risk tolerance. Some are looking at this point in time as a great buying opportunity.

Fidelity managers are advocating for patience and staying the course.  

Continue working with your advisor on implementing the six strategies used during volatile markets;  https://www.fidelity.ca/fidca/en/investor/sixstrategiesvolatilemarkets

We hope that this information has been helpful and would like to ensure you that we continue to carefully monitor the current market conditions during these uncertain times.

​

​

​

Disclaimer: The articles and information provided on this website are intended to raise issues and help you find solutions and should not be construed as advice for any specific situation or individual. Always consult your representative and your tax or legal professional, as applicable, before taking personal action.

​

*Disclosures: Mutual funds are offered through Networth Financial Corp. (NFC), member of the MFDA and MFDA Investor Protection Corporation. Commissions, trailing commissions, management fees, and expenses may all be associated with mutual fund investments. Please read the Fund Facts Sheets before investing. Mutual funds are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer and are not guaranteed, their values change frequently and past performance may not be repeated.

Doris Bruneau is dual licensed for Life and Accident and Sickness Insurance. As such, you may be dealing with more than one company depending on the products or services provided. NFC is responsible only for business licensed under the Provincial Securities Act & Regulations. It does not supervise or review any other business. All other services are the responsibility

of another licensed entity and not the responsibility of NFC.

​