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
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.
Below is a list of links and resources to help you access information and services during these uncertain times. Everyone is impacted by this and if we can all work together to help one another navigate this outbreak we will all be better in the end, even just a phone call to check up on friends and family will make a difference.
NOTE: Please ensure you place reliance on official websites – the links provided take you to the source (and are regularly updated by the source) and are in no way a referral or solicitation for business, rather only information that may assist you during these trying times.
Canada's COVID-19 Outbreak Update (current situation)
Canada’s COVID-19 Economic Response Plan: Support for Canadians and Businesses
Public Health Agency of Canada (PHAC) - up to date information on the outbreak
Alberta Health Services (AHS) - COVID-19 Online screening and assessment
Canada Recovery Benefit (CRB)
Alberta Recovery Plan
Economic Aid package
Employment Insurance (EI)
Mortgage (insured mortgages)
Emergency Services (Alberta)
Immediate Emergency Isolation Relief to Support Albertans
Business Owner services
Calgary Coop care package service (free)
Costco Delivery (2 day delivery across Canada)
Stronger Minds (free emotional well being assistance for all Canadians)
Travel (the latest from the government of Canada on travel advisories)
Homeschooling resources and children's activities during isolation
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Are you wondering what your Solomon advisory team is discussing now?
Come see our behind the scenes live discussion about CURRENT EVENTS, EMERGENCY BUDGETING, INVESTMENT OPPORTUNITIES and more.
May 7, 2020
12:00 PM (MST)
Retiring or thinking about your retirement?
This webinar covered the following topics:
Should I be considering transferring out of my pension plan?
How do I minimize the taxes on my transfer?
How do I guarantee my income while still taking advantage of the current growth opportunities?
Wednesday April 15, 2020
3:00pm to 4:00pm (MST)
6:00pm to 7:00pm (MST)
CURRENT MARKET CONDITIONS
Current market conditions, the impact on personal finances and what you can do during these turbulent times
Saturday March 28, 2020
10:30am to 12:00pm (MST)
Topics to be covered:
Current market conditions - separating fear from reality
Winning behaviors in turbulent markets - what you can do
Winning strategies - what we can do and practical options to guard your capital and regain lost ground
I started in the finance industry in 2007 mainly to learn about money and understand how it works so I could manage my own, soon realizing that most people did not have the education or "know how" about money and that the struggle was real. From helping families achieve their financial goals to assisting business owners with succession and estate planning, it fulfills me everyday knowing that I can make a difference for others.
Having directly worked as a biological counter terrorism project manager (my previous career) at the Public Health Agency of Canada, National Microbiology Laboratory in Winnipeg during the SARS outbreak (Severe Acute Respiratory Syndrome), I understand first hand the impacts and effects on people’s physical, mental and emotional well being during such times. It’s important to be prepared and stay current on what the medical experts know about the virus/outbreak and how we are to deal with it…see the resource page for assistance with this.
I believe as a community we can help one another through such times, that’s what communities do!