Resiliency in the global markets

Jul 03, 2020 | Elinesky Schuett Private Wealth Management


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We are continuing to see resiliency in the global markets, including significant job growth numbers in the U.S. despite the continued spread of the virus.

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We are continuing to see resiliency in the global markets, including significant job growth numbers in the U.S. despite the continued spread of the virus. We provide our thoughts below, along with your link to the latest 10-Minute Take podcast and information about our participation in the Tour de Guelph. Your invitation to our upcoming Cyber Security online event is also included in this blog post.

 


 

It was a holiday shortened week in North America, with Canada Day and the U.S. Independence Day celebrations naturally diverting some investor attention. Nevertheless, that didn’t stop the coronavirus from continuing to spread. Surprisingly, global markets have been resilient in the face of this recent escalation. We provide our rundown of the situation below.

Coronavirus update

Some parts of the world – Canada, large parts of Western Europe, and China for example – continue to see generally stable or lower numbers of new daily cases. Governments in these regions have, to this point, successfully enabled their societies and economies to safely adjust to living and functioning with a virus that is still present but under control.

Elsewhere, the story remains much more challenging. Trends continue to be troubling in parts of Central and South America, the Middle East, parts of Africa, and large swaths of South and Southeast Asia, but the region that has seen the most disconcerting deterioration is the U.S. Just a week ago, the country was averaging close to 35,000 new daily cases, nearly double the level of about a month ago. That figure has risen yet again, to more than 50,000 new daily cases this week. It has forced a number of states to scale back their reopening plans, with some reintroducing restrictive measures and mandating the wearing of masks. We expect more may be needed in the weeks to come.

Positive economic momentum… for now

One would expect global markets to have responded poorly in the face of the concerning virus trends of late, but that has not necessarily been the case. The global markets have been much more resilient compared to when the virus first emerged earlier this year. The question is why?

There may be a host of reasons, ranging from the virus being less of a surprise, to the extensive work and progress on vaccines and therapeutics, better preparedness to help the more vulnerable population, lower odds of full scale lockdowns in the future, and the very significant amount of government aid that is in place to help businesses and consumers, at least to some extent. However, we believe that one of the most important factors at play is the continued positive economic momentum. This week, the U.S. announced it added more than 4.7 million jobs in June, adding to the 2.7 million jobs gained in May. U.S. employment remains well below the pre-pandemic level as there were more than 20 million jobs lost between March and April. Nevertheless, it’s a meaningful change in trend from earlier this year. Furthermore, this week’s readings of manufacturing activity for the month of June across the U.S., Canada, Europe, and China add additional evidence that suggest the worst may have passed for now.

The question is whether this recovery can be self-sustaining? We think it is too early to make this case, particularly given the resurgence of the virus in the U.S. Furthermore, we are not sure it matters just yet given the unprecedented actions being undertaken by governments around the world. The U.S. government is expected to negotiate and deliver another round of stimulus that may extend some of the aid programs for businesses and the unemployed, just as the Canadian government did a few weeks ago. These programs continue to buy more time for economies to heal, and should serve to reassure investors.

While we recognize the need for such aid at this juncture, we look forward to the time when such assistance is no longer needed and the basic drivers of long-term sustainable economic growth – a healthy population, businesses that are free to open, and consumers that are willing to spend – are more firmly in place.

Elinesky Schuett Speaker Series

Cyber Security and You!
July 23, 2020 - 1:00 p.m. - 2:00 p.m.

We hope that you can join us for our second online event in the Elinesky Schuett Speaker Series, Cyber Security and You. We are pleased to welcome two experts from RBC Royal Bank that will be sharing information about how to stay safe online!

Guest speakers

Mark McCarthy
Senior Director, Corporate Investigative Services, 
RBC Royal Bank

Mark is part of RBC’s Financial Crimes Group. He has spent his entire 21 year RBC career with CIS/Forensic Investigations where he began as an Investigator. He has held progressively senior roles within the group. Mark was previously with the Guelph Police where he spent most of his service in the Fraud Squad.


As the Senior Director, Mark has global responsibility for the investigation, case management, asset recovery and prosecution of serious frauds and financial crimes against RBC, including complex regulatory investigations escalated from Compliance and RBC Law. Mark is a member of the Canadian Association of Chiefs of Police and sits on the Public Sector Liaison Committee.

 

David Zamler
Director of Digital Forensics, Corporate Investigation Services, 
RBC Royal Bank

David is responsible for the overall strategy and operations of Digital Forensics for the enterprise. He and his team work closely with Fraud Management, Cyber Security, Security Operations, and Financial Crimes to ensure consistent investigations for all Cyber events.

David has been with RBC since November 2016, he holds designations in Information Security, Digital Forensics and a Bachelor Degree in Urban Planning/Geography from York University. Prior to joining RBC, Dave worked at CIBC, West Coast Energy, and Ernst & Young in a variety of roles including Information Security, Computer Forensics, Incident Response, Ethical Hacking and Information Systems Auditing and Assurance Services.

Your host
Elinesky Schuett Private Wealth Management of RBC Dominion Securities

Kindly RSVP by July 21 by clicking on the button below.

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Have a question for Mark or David?
Submit your questions with your RSVP!

 

10-Minute Take

There is a new 10-Minute Take podcast available on our website.

How streaming platforms are winning through crisis

If content is king, then streaming platforms are its thrones. And those thrones are getting higher and higher as consumers cut the cord with traditional media providers. Audiences have been seeking refuge in front of their screens and services like Netflix, Amazon Prime, and HBO Max have offered their entertaining alms in-kind. But can these producers continue to satiate the people’s growing hunger for quality content, especially with halted production around the world? And who among them can survive the ongoing streaming wars? Kutgun Maral, RBC Capital Markets’ Media Analyst, shares his outlook on streaming services.

You can listen to this 10-Minute Take podcast online now: The 10-Minute Take.

Signing documents is easy with eSign

Did you know that we can continue to open accounts and welcome new clients to our team through RBC Dominion Securities' continued investment in technology?

You can now sign documents electronically with eSign, a digital signature solution that sends your electronic signature-ready documents to your email. With a few clicks of your mouse, your documents are signed! You are able to download a copy of your signed documents as well, keeping an electronic copy on file for your records.

You can learn more about how eSign works in this how-to article, Signing Documents Electronically with RBC Dominion Securities.

A message from Team RBC

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The world isn’t back in full swing just yet, but at least our golf game is. As many of you are welcomed back to your favorite sport this summer, we wish you a safe and exciting return.

Our sentiments are shared by Team RBC’s Corey Connors and Ryan Palmer, who offer their well-wishes in these special messages:

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Tour de Guelph

The annual Tour de Guelph community ride is officially underway. We are honoured to be involved with this extraordinary community event as the presenting sponsor of the 2020 Online Rider Photo Album. We are also riding in the event this year, with seven team members hopping on their bikes, staying social distant, and helping to raise funds for this great cause. We’ll be out on the road on July 21!

Tour de Guelph supports the Guelph General Hospital and many other local charities through the Rotary Clubs of Guelph South and Guelph Trillium. This year, the Guelph General Hospital’s portion of the funds raised from the event will help to purchase new blood pressure monitors for the Day Surgery Unit.

Visit the Tour de Guelph website for more information.

 

Glasses and masks: a foggy dilemma

As we are seeing more and more public health agencies recommending or requiring mask wearing in public places, we thought you might be interested in this handy article with tips on how to help you keep your glasses from fogging up!  National Post: How to stop your glasses from fogging up while wearing a mask

 

Community Corner

Each week, we like to end our weekly posts with a few good news stories from in and around the community. We hope that they brighten your day!

As always, we are available to connect with you personally. Please don’t hesitate to contact us at 519-822-2024 or elineskyschuett@rbc.com.