We continue to think about the welfare of our clients, family and friends during this challenging time. Concurrently, we are thinking of our clients’ investment portfolios and are monitoring developments with respect to the spread of the coronavirus, government responses, and implications for economic growth and the markets.
Although we will continue to share economic and market updates, we thought that we would take this moment to share some of the positives we’ve seen over the past week.
Our team
As you are likely aware by now, social distancing has changed the way that many business are operating - This includes us. Some of our team members are now working from home, while others are working from the office. What hasn’t changed is our commitment to our clients. We remain available by phone or email, and encourage you to reach out to us if you have any questions.
Community coming together
You may have read in Guelph Today this week about a Guelph-based business that is making a difference in the community. Dixon’s Distilled Spirits is now using their resources to help solve the shortage of hand sanitizer and have been supplying it to our local health care and front-line workers.
We are also hearing about larger retail corporations adding dedicated shopping hours for seniors. Although there are some businesses who have temporarily closed due to new regulations, we are seeing many who are choosing to do business a bit differently.
We are seeing an increase in take-out, delivery, and even curb-side pick-up options. If you are able, we would encourage you to support one of the local restaurants in your community to pick up lunch or dinner to-go, or purchase a gift card to use when their restaurants or businesses are fully operational again.
We all have a part to play in what comes next for our economy and our community. By coming together in times of crisis, we all win.
No new local cases detected in China
It was in the news yesterday, and is certainly something to celebrate: China, the epicenter of this pandemic, shared that they had no new local cases of COVID-19. The only new cases reported were those that were from people who were returning to the country.
And while we are in the midst of seeing closures in North America, we have been reading in the news about businesses starting to reopen. Earlier this week, after being closed for a month, Apple has reopened all of their stores in China.
Although we are all adjusting to what is happening locally, we can look to those countries that first experienced this to know that “this too will pass”.
Innovation
We are hearing about the focus on research and vaccine development related to COVID-19. It is calming to know that, although the estimated time for delivery of a potential vaccine is over a year away, eventually it will be there to help the most vulnerable members of the community.
There is also work being done to develop antiviral medication to combat the virus. As published in Maclean’s in late February, along with other trials, work is being conducted in a Canadian lab to find a solution: A made in Canada solution to the coronavirus outbreak. We, as many others do, hope that these antiviral drugs will be tested and available to the public soon.
Also, we are proud to share that Canada has been a leader in testing capacity. As reported in the National Post, new COVID-19 tests have been developed so that results will be available sooner.
Government measures
We will continue to look to the Provincial and Federal Governments to introduce new measures to support the economy. This week, there have been several new measures introduced by the Federal Government, including the reduction of the minimum RIF withdrawal rate by 25 percent in 2020 and the deferral of the personal tax deadline by one month.
The Markets
We expect the volatility to continue in the near term until clarity emerges on the potential containment of the coronavirus. In the meantime, we encourage you to listen to the audio file that we posted yesterday, and remember Jim Allworth’s message; “You’re not buying today’s earnings. You’re buying a long-term stream of earnings”.
We have shared these articles in a previous email, but thought you might want to have them back at the top of your inbox:
There was a great article published recently in the New York Times about market volatility, it reminds us that we’ve been here before: Suffering Through Your First Financial Crisis? Read This to Relax.
We can also reflect on the past behaviours of the market to give us an indication of what we can expect when we get to the other side of this crisis. Business Insider published an article recently that advises you to set your emotions aside and stick to your long-term plan. We have seen that staying the course is always the best course of action.
Our approach to communication
Throughout the foreseeable future, we will continue to send emails to our clients with updates and market commentary. Information is also being posted on our website and Facebook page.
Although our communication is increasing, we will not be sending texts to our clients with links to click. Also, we will not be sending unexpected emails asking our clients to click a link to claim your deposit or to make a payment. As always, please remember to be vigilant. Guelph Police say that scams are starting to pop us as a result of COVID-19.
As always, we will remain are available to answer any questions that you may have. Please do not hesitate to contact us at 519-822-2024 or elineskyschuett@rbc.com.