Hello all,

Over the past few weeks, many conversations were had, and you can tell that its summer from some of these conversations. In between learning of new cottages, boats and great bbq and cocktail recipes, there are some common themes. Still every day is Tuesday, but the weekends feel real and are being enjoyed. Gardens are growing (we had our first zucchini harvest). Most conversations still revolve around the US election and the markets, some are nice distractions about what if scenarios about a vaccine or cure, while others revolve around the return to school.

Just an FYI, the best recipe so far was the Rhubarb Gin Cocktail, followed by a delicious bbq’d roasted eggplant mixed with red lentils (like a baba ganoush mixed with a daal) . If anyone would like them feel free to give me call and I’ll forward them off. Of course If you have a favorite, I’m open to new ideas please send them along as well.

OK Martha Stewart get on with it…Markets keep moving up, I still don’t feel comfy going all in, but I also don’t want to be left behind.

It’s ok to feel this way. As there are still many unknowns. Short answer is there is no right answer as to what to do. Investment plans and models are based on your objectives and time horizons. Clearly, the older you get, you’ll have a different time horizon and more than likely your objectives may change too. The best way to figure this out to re-visit your financial plan or as some clients have done scheduled a will and estate plan review with one of my extended team members.

I think it’s also best not think that you are only investing for 2020 or even 2021. Maybe it’s time to think about 2022 and beyond.

That seems like a smart thing to do. What do I need to do?

Call me and schedule a time? I’ll also ask if anything has changed in the last 6 months, that weren’t issues prior.

So there are only 90 (or less) days until the US Election. There are pros and cons with either, but I keep hearing that if Biden wins, the market will crash because he’s going to increase taxes…

Here’s my two cents… Who knows what’s going to happen. Pollsters have made wrong predictions in the past too. Again, nobody knows what’s going to happen. All I can “guess” is that whomever assumes the role, will have a tough 2 years just dealing with the massive hit to their economy and the stimulus packages that have to be rolled out, to avoid disaster.

As mentioned in previous articles, if there are tax increases, it may affect the market negatively for a short term, but in the end it’ll be a onetime event, and the markets will realize that the US is still the easiest place to do business, and eventually regain their momentum.

One thing I do think will happen will be the ratchetting up of trade tensions with China and the rest of the world, lots of bickering and heap load of promises made that will have to be broken, probably more civil unrest. Therefore, volatility will more than likely increase. So again, maybe it’s time to reflect on what you own and make the necessary adjustments to the portfolio to prepare for the markets of today and tomorrow.

Lots of talk about the vaccine or a cure, which should have a positive effect on the market no? Should we be buying the companies that are in the running of finding a cure?

Again, who knows when it’s coming? How it’ll work, if it’ll work and how many people are going to take it. I know Putin’s got a ‘cure” and he’s going to start vaccinating all healthcare workers and teachers. All I can say is that I’m happy to be living in Canada and not there.

These things take time, and tonne of money. More doctors are working on this than ever before and more money has been spent on trials than ever before. It’s good to see humanity working together to find a common cure. I’m going to take my cues from the epidemiologists, and scientists, they seem to have a better handle on it than I do.

As for what to invest in? You already own some of the best in class names directly or through the ETF’s. I wouldn’t be chasing anything in the hope that company A or B will have a cure. Hope is not a strategy. Let’s stick to the process we use to choose the best in class names and not chase things because they’ve already run up.

I’m confused that the market keeps going up, and is not reflecting what’s happening in the economy. What’s going on?

The word that is being “bandied” about is called “decoupling”. Currently, there is still so much money in the market from central banks, I’ll still call it funny money. Three times more stimulus has been flooded in the market in the first 3 months than the entirety of the 2008 financial crises. This still has to work through the system.

The real question that investors have to ask is do you have confidence in the liquidity central banks?

Huh? Speak English not economiceze…

Do you believe that the central banks can continue to print money without it affecting the long term viability of their economies? Currently, it seems that the answer is yes. If that is the case then the markets will continue to their trajectory. The central banks are still on the path of “do whatever it takes…” more QE, more Bond buying, and more stimulus.

So apparently deficits don’t matter anymore…

I think it’s always prudent to review what you own. think it’s prudent to do some “risk mitigation”. Look at outsized profits, or parabolic moves. think it’s most prudent to call me and discuss what you own, and review your plan. Same goes for your friends or family, feel free to reach out to them and ask if they’d like a sounding board or planning help.

Thanks,

Christian