We wanted to share some insight on the market as we enter another period of uncertainty with the Omicron variant emerging.

Global equity markets are closing on a down note as the discovery of a new variant of the coronavirus recently identified in Africa has created some alarm. It has been reported that this new variant contains an elevated number of mutations that raise questions around its transmissibility and its response to vaccines. Information remains quite limited at this point and as a result it is premature to draw any conclusions. Nevertheless, it is fair to assume this development has added a new dose of uncertainty for the markets, at least until more evidence emerges and scientists can assess the variant’s attributes over the days and weeks to come. There has also been a meaningful increase in Covid infections – of the more established delta variant – in some parts of the world. This is particularly true in Europe, which has re-emerged as the epicenter of the pandemic.

Understandably, the average Canadian may pay more attention to developments at home, or south of the border, than to Europe. Nevertheless, the region plays a significant role in the global economy and capital markets. On the former, it is the third largest economy in the world, and counts China as its largest trading partner. Meanwhile, the area, including the United Kingdom, represents more than 15% of the global equity market. As we saw nearly a decade ago with the European debt crisis, developments in the region can have a meaningful impact in global financial markets. For a more in depth look at Europe’s economy please click here. 

We will look beyond this short term volatility at the underlying economic recovery and the fundamentals of the positions we own. At this point we do not feel the need to change our thesis that the recovery will be bumpy and there is still growth on the horizon as economies continue to recover from the pandemic. 

Financial Health Update

The pandemic has forced many to think about their health and wealth. Harmony across families can be maintained by having a multi-generational dialogue. Leanne Kaufman the CEO of RBC Royal Trust suggests that often times, you might want to consider naming a corporate executor to manage your estate in a bid to avoid burdening loved ones. Especially if there is a potential for argument. Leanne suggests “If you are going to name a loved one, let them know that they can get help and they have your permission to do it.” If you have any questions about a Corporate Executor, please reach out to us. We understand that each situation is unique.

 

2021 year-end tax planning is on our minds, this article takes a look at a summary of some common yearend tax planning strategies. If you would like to discuss your tax plans, please email us to arrange a meeting.

 

We hope that everyone is well & enjoying the first little dusting of snow!

 

Hayes Vickers Private Wealth