COVID-19 Investment Market Volatility (Thoughts to Consider)

It has been a while since I have sent a mass email to my clients, and at this point late on a Friday afternoon (at the end of 2019 RRSP season), I have a few thoughts I’d like to share with you.

First, no doubt you have seen the news this week regarding the significance of the fears around the coronavirus (COVID-19).  There is such irony in naming such a serious epidemic after a cerveza we may enjoy on hot afternoons at the beach!  While I hope you remain unafraid to enjoy your favourite beverage, whatever that may be, you may have some concerns about your investments.  Here’s a summary of our thoughts: as long as your goals for your investments remain the same as when we set up (or last reviewed) your accounts, then the best approach is to stay the course.  I know this is easier to say than do. 

For over a year now we have been discussing the imminent ending of the longest-ever Bull Run.  Some – the optimists in the crowd – may even consider these days as an excellent buying opportunity; however, timing the market is dangerous at any time. 

Know that our fund managers are actively managing our investments.  I have linked to a PDF article, written by a colleague Brent Joyce – Chief Investment Strategist at GLC Asset Management.  I encourage you to have a read; this may help with understanding of the market reaction, and in addition, it suggests strategy going forward.  What can we expect in the coming weeks (months?).  Here’s a few words from the author of the attached: “We expect markets won’t stabilize until fear and the number of new cases (of COVID-19) has peaked. This doesn’t mean equities will remain in a free-fall throughout the crisis, simply that volatility will remain elevated.” 

If you’d like to read a bit more about Market Cycles, or how to deal with Market Volatility, I have included a couple links to the new Canada Life blog site.

While I have you (and speaking of Blogs), I thought I would share a recent blog post that I wrote on this website.  It’s a movie review (The Art of Racing in the Rain), but with a degree of focus on Financial Protection in the event of a serious illness diagnosis.  Have a look, and let me know what you think.  No doubt I have spoken to many of you about Critical Illness insurance, particularly those of you who are business owners.  If we have not yet had that conversation, please let me know and let’s discuss your options.

In summary, if you have serious concerns about the performance of your investment portfolio, we should have a conversation.  My goal with your hard-earned investments is to ensure that you feel you are well-positioned and that you will be able to reach your financial goals.  And here’s one closing word of advice (from my happily retired and well-traveled Mom) as it relates to COVID-19:  Keep calm and wash your hands!

Please feel free to share this email with any of your family or friends.  Have a lovely weekend, and let’s get together soon.