We hope you have remained safe and healthy as we have progressed through the 1st quarter of this year. We have seen continued recovery in the market are we are pleased with the results we have seen in our client’s accounts.
The transition to the Biden administration has not shaken markets, and the recovery from last year’s low has continued uninterrupted. The market looks to have built in most of the good news that we have expected/are expecting. We still have the threat of Covid and potential emerging Covid variants as well as the pace of vaccinations as potential market problems, but on the positive side we have the economy recovering strongly from the stimulus in the system and the pent up demand as things open up.
So where does this leave us? Could we see a market correction, or will it simply go sideways for a while?
Fortunately our bias towards investments that pay income works to its fullest during sideways markets. Unlike a lot of investment strategies we get paid to wait.
With the markets at pretty high levels it is possible that any negative news can cause a dip. It is impossible to time when a pullback will come, but almost every year has one, and this year is unlikely to be any different. We have had a long period of strong recovery and it would be very normal for markets to pause or even pull back from these levels.
We would treat such an event as a buying opportunity.
Until then we will continue to collect our income and maintain our positioning.
We are here if you have any questions.
Stay safe and healthy.
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.