Good morning,

I trust the weekend was a great one, hard to believe we are half way into June!!

Well, last week in the markets was marked by a return of volatility driven by renewed concern over the global pandemic. It comes after weeks of improving sentiment and growing hope that the worst of the health crisis may had passed and confirmation that the economic recovery had begun.

We are set to see more volatility this morning and it brings to mind the word risk and the fact that we all seem to have a different perspective on what risk means to us and our unique journey.

Some would define risk as volatility… In my world, managing risk is my job Benjamin Graham said it best “The essence of investment management is the management of risks, not the management of returns.”

Managing risk is much more than volatility….it’s ensuring that you have established achievable goals and have the proper plan in place to achieve them. Understanding risks and being prepared are essential for us all to accomplish what we set out to do in our wild and precious lives, as individuals and for our families.

This week, I encourage you all to set some time aside to review your plans and be sure to connect with me over the next few weeks to review and update:

• Your goals: Personal goals, Family goals and Professional goals
• Will & Power of Attorneys
• Life Insurance

If you don't invest in risk management, it doesn't matter what business you're in, it's a risky business. Gary Cohn

So, that’s some homework for you…..now for a brief update to start the week

Coronavirus update

First, the good news. The provinces of Quebec and Ontario continue to see average new daily cases that are trending in the right direction. As a result, the situation in Canada is improving and has led to an expansion of reopening plans. The same can be said for much of Europe where mobility trends have been rising as lockdown restrictions have eased and there have been limited signs of any acceleration in cases. The exception to this appears to be Sweden and the Balkan region, where there have been spikes in new cases in Serbia, Albania, Bosnia and Herzegovina, and Macedonia. Elsewhere, the news has not been as encouraging. Central and South America remain the epicenter of the crisis. But, there are concerning trends in other regions too. More specifically in Southeast Asia and the Middle East where countries such as India, Iran, and Pakistan have seen meaningful increases once again this week. Meanwhile, in Russia, case trends have not accelerated but remain elevated. Investors appear to be most concerned, and confused, about the pandemic in the U.S. The question and debate centers around whether a resurgence of the virus is occurring. At a national level, this does not appear to be the case. But regionally, the story is less clear. California, Texas, Arizona, Georgia, Florida, and North and South Carolina are some states that have witnessed clear increases in new case volumes over the past week, with some also showing increases in hospitalization rates. Furthermore, the risk of escalation in other states remains very real given the mass gatherings and protests that have created more opportunities for the virus to spread. Investors will undoubtedly be focused on this over the next week.

The right balance

The reemergence of volatility has reminded us that the path of the economic recovery will be uneven, difficult to forecast, and may remain below its full potential for some time to come. Jerome Powell, Chairman of the U.S. Federal Reserve said as much this week when he indicated that the pace of recovery remains “extraordinarily uncertain” and depends heavily on the ability to successfully contain the virus. Herein lies the next challenge for government officials. More specifically, what approach can foster a functioning economy with effective virus control? The answer is not likely a draconian lockdown as was the case for most of the world over the past few months. Instead, it may involve tactics that are regionally focused, allowing businesses to remain open, mandating physical distancing and protective measures, and identifying and tracing emerging risks and outbreaks. Surely, this is easier said than done.

Investors face the difficult task of staying disciplined in their decision making, focusing on their long-term objectives, and not getting influenced by the short-term swings in sentiment and prices. This challenge has been particularly relevant in recent months and holds true today. While we watch the week to week developments closely, and are constantly monitoring our portfolios for opportunities and emerging risks, we remain committed to our long-term approach that is focused on proper planning, asset allocation, rebalancing, and regular reviews of all positions.

Four steps for achievement: Plan purposefully. Prepare prayerfully. Proceed positively. Pursue persistently William A Ward