October 2020 Thoughts

The Wave Is Here……for the second time 

As most health officials predicted we are now experiencing the second wave of COVID-19. Over the past six or seven months, we have all learned a lot about the virus. While we are seeing an increase in cases, I am certainly happy that I live in Canada where we have great healthcare, a responsible population and proactive leadership.  

COVID-19 and the Economy 

You have probably noticed that many of your neighborhood small businesses have suffered greatly this year. Stores have closed, landlords have lost tenants and many people have received emergency income benefits from the government. Small business represents approximately 50% of our economic output. I do not think that the full extent of COVID-19 on the economy has been realized. Once the government programs and support measures stop, we will most likely see businesses and our economy struggle in 2021.  

The outcome of the US election will likely have a great impact on how the economies will perform in the near term. Typically, US election years are good for stock markets. I feel a ‘wait and see” approach is wiser this year given the massive issues that must be addressed.  

Stock Markets 

Most of the major stock markets have seen exceptional recoveries from the springtime lows. By far the best performing sector has been technology. This was spurred on by the critical need for businesses to adjust how they conduct their daily operations, communicate with colleagues and customers, and process transactions. I do believe that technology in general will continue to be strong in the future as many processes that were adopted under pressure will become mainstays.  

Exercising prudent strategy and sound principals is more important than ever. We are facing some challenging times ahead with stock market values near pre-pandemic levels but underpinned by what could be a fragile economy.  

I have talked endlessly about the importance of having a cash position within portfolios. It significantly reduces risk in volatile/uncertain times like this and will allow for tremendous opportunities when they present themselves. Patience is key. The next couple of quarters will reveal a lot for the coming years.  

Administrative Support Changes  

 Many of you have had communication with Juliana over the past five years. This month she accepted and moved on to a corporate role outside my practice.  

I have already started my search with the help of a client who is a professional recruiter. I will keep you posted when we find the right person to fit the position.  

Manulife Online Access 

 You may have noticed that there was an insert in your most recent statements that came from Head Office. This brochure is for the Manulife Online Access portal. Many of you already have this and have opted for receiving your documents electronically. If you do not have this access yet, I encourage you to register for it. You can get your statements, trade confirmations, view your account and download your tax slips. 

It is important to note that if you are using one of the older client access systems, they will no longer be active after December 31, 2020.  

Please take a few minutes to register for Manulife Online Access at https://manulifewealth.ca when you have a chance. Click “sign in” at the top right and go to Manulife Online Access.  

Final Thoughts 

 2020 has certainly posed its challenges so far and it is not over quite yet. That said, I feel good about general investment positions and allocations. As always, I would be pleased to have a detailed discussion with you on your personal situation. Never hesitate to reach out.  

 Take care of yourself and others.  
 Brandon