Our Strategy Moving Forward
We hope all our clients and their families are safe and coping well with the long lockdown we are currently in. I am sure it has been difficult for many. There is hope these lockdowns will ease in the future according to Premier Ford. Although we have not been given a date we will eventually see more accessibility to the world again.
The market has been equally as difficult and we saw the market decline in March dramatically. We monitored the situation closely and we believe we saw the bottom of this decline on March 23rd. This bottom coincided closely with stimulus passed by the governments around the world to help the economy during the pandemic. Since this date we have seen the market stabilize and recover ground it had lost. There are less violent price swings and more upward movement since then.
The all-important questions is what do we do from here to manage and in some cases take advantage of this market?
We firmly believe that buying income investments helps weather market storms. Through March and April we have seen the market move up and down but, the majority of companies have continued to pay their income. We want to continue to generate these income returns while we wait for the world and economies to recover. What we are also doing is looking to take advantage of opportunities at hand. A lot of high quality companies have been discounted and we continue to review our client accounts to try and take advantage of the current market situation.
The type of stimulus that has been injected into world economies is the largest that has ever happened. When the external pressure of this virus has subsided and the economy gets back up to speed, we will see forward progress again. We will see up and downs in the market in the future and our goal is to hold financially strong companies that we know will weather the volatility and continue to provide income so that when the negativity ends we come out of it on the right side.
We hope everyone continues to remain safe. We are proud to be there for you through these times of uncertainty and if you ever have any questions or concerns you can reach us through phone or email.
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.