Team Update
In May 2022 Margaret celebrated 30 years with RBC Financial Group. This includes 28 years with RBC Wealth Management where she has been providing personalized wealth management solutions and managing client portfolios.
Mathew has now passed all three levels of the Chartered Financial Analyst® (CFA®) Program and joined Margaret in becoming a CFA charterholder. In addition to this, Mathew has become fully licensed as an Investment Advisor and is now a partner in the business alongside Margaret. We look forward to the future and operating as a team under Kothlow Unser Wealth Management Group.
We have also welcomed a new team member to the group, Gino Sacco. Gino is Fortunata’s son and he joined the team in February. He will be working closely with Fortunata and helping the team in an administrative capacity. Gino comes with a background in Business Management & Operations with an education in Business Administration and Data Analytics. He is currently working on completing the Canadian Securities Course to become licensed as an Investment Representative. Gino can be reached directly by calling 604-257-7720 or via email at gino.sacco@rbc.com.
Market Update
As we move into the beginning of July, some noteworthy developments have occurred in the markets as inflationary concerns have become overshadowed by growing fears around a recession. Most notably, this has resulted in some weakness in commodity markets such as oil, copper, and wheat, which have all fallen of late. The first half of 2022 has been an extremely challenging environment for most asset classes. In June alone, we saw some of the sharpest market moves in recent history – The S&P 500 entered bear market territory in June, making the first half of 2022 the worst half of any calendar year since 1970. Fixed income investors also saw a difficult month in June compliments of the central bank communities, with US 10 year bond yields moving nearly 2% higher throughout the first half of 2022. Domestic and global bonds have declined from 9% to 17% thus far year to date. Typically we see stocks and bonds act in an inverse or opposite relationship. In 2022 so far, that is not the case. Global equities have plunged in value from 10% to 30% in North America with European, Asian and Emerging markets declining 17-18%.
The market is not without concerns of what could go wrong from here… inflation, rising interest rates, war in the Ukraine, with fear and pessimism at the forefront. We foresee these challenges remaining for the second half of the year. We are hopeful inflation may peak at some point and start to decline from today’s elevated levels. Catalysts to drive inflation lower include decreases in demand for goods, improvements in global supply chains, opening of the Chinese economy and the potential for more subdued commodity prices. Given the significant rise in the inflation rate last year, comparisons may lead to a natural slowing in the rate of inflation going forward. The levels will remain uncomfortably high, but in time, a falling inflation rate may result in less volatile market conditions, and a potential return to the more typical behavior and relationship we have witnessed between stocks and bonds.
The period of uncertainty, volatility, and market weakness appears poised to continue for a little while longer. Our approach remains centered on building investment plans that can deliver on the long-term needs of our clients with the expectation that we will have to deal with periods like this from time to time. After all, markets don’t always move higher. But, history has taught us that investors are more likely to succeed in achieving their long-term financial goals by staying disciplined and committed to their financial plan. That has, and remains, a guiding principle of ours.
We want to wish all of our clients a fantastic summer. We will continue to monitor your portfolio and market developments closely and should you have any questions, please feel free to reach out.
