Corona Correction II
Late last week financial markets appeared to be attempting to stabilize. That changed on the weekend when Saudi Arabia and Russia failed to agree on oil production cuts which has caused oil to fall dramatically in value.
This new development added more uncertainty to an already nervous market. The result was one of the worst days for the stock market since the Great Recession of 2008. Obviously days like Monday are difficult for investors but, there is a silver lining. Many high quality companies are at attractive valuations. These are discounts we have not seen for a long time. We have the opportunity to buy these companies when they are cheap and benefit from the current situation.
While we wait for such opportunities our bias towards income producing investments will allow our portfolios to continue to generate cash flow while we go through this difficult market period.
This communication has been prepared by Alan Tchabushnig and expresses the opinions of the authors and not necessarily those of Raymond James Ltd. (RJL). Statistics, factual data and other information are from sources RJL believes to be reliable but their accuracy cannot be guaranteed. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. It is intended for distribution only in those jurisdictions where RJL and the author are registered. Securities-related products and services are offered through Raymond James Ltd., member - Canadian Investor Protection Fund. Insurance products and services are offered through Raymond James Financial Planning Ltd., which is not a member - Canadian Investor Protection Fund.