Cover photo by Peter- he took social distancing seriously by spending a bit of time camping in Algonquin Park over Canada Day.
A few topics our newsletter touches on this week:
- Important Notice: Transition to Monthly Newsletters
- Our Thoughts
- RBC Capital Markets: Imagine 2025
- 10 Minute Take Topics: How Streaming Platforms Win Through Crisis
- Interesting Reading: Eldercare Crisis in Canada, Mapping the Coronavirus
- Distraction Content – Juno Awards & Canada Day
Important Notice: Transition to Monthly Newsletters
As a part of our new normal, we have decided to transition our weekly newsletter to monthly editions. Thank you so much to everyone for your responses/feedback & for reading along, we hope that you continue to find them insightful and interesting. As always, If you want to discuss the content of any of our newsletters or have any questions about your portfolio – please do not hesitate to reach out to us directly.
Our Thoughts - Resilience
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.
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. It has 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, helping businesses and consumers, at least to some extent. But, we believe one of the most important factors at play is the positive economic momentum that continues to be on display. 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.
RBC Capital Markets – Imagine 2025
Market disruption is a good time to take a look at the current investment landscape, but also to start thinking about what the future might bring. “Imagine 2025: Looking to the Future – a Global Perspective” includes 1 page analyze of every sector and the potential longer-term implications of the current environment. On Page 2, there is a quick summary of the 4 key themes: Digital Transformation, Social Behaviour, Capital Allocation and Shareholder Demands. For those interested in a deeper dive on these topics, it is worth a read.
The 10 Minute Take – RBC Podcast Series *new episodes*
New podcast episodes will get posted regularly to discuss various issues front and center during the COVID-19 crisis. You can jump to a specific episode from the links below, with easy access to past episodes as well.
Interesting Reading
- RBC Economics article on the Need for Bold Change to Canada’s Eldercare System
- Bloomberg piece Mapping the Coronavirus Outbreak Around the World
Distraction Content – 2020 Juno Awards & Canada Day
Continuing the Canada Day theme a bit this week, the Juno Awards took place last night (virtually) and spotlighting some great artists from across the country. Click here for the complete winners list.
Whether you use Google Play/Apple Music/CBC Listen/Spotify to stream music – check out the great Canada Day playlists they have all been creating to get introduced to new Canadian artists and rediscover some old favourites.
ICYMI: You can replay the evening performances from Virtual Canada Day on Canadian Heritage’s Youtube account (Avril, Alanis, Sarah McLachlan & more) here.
Our team is here for you
We are happy to run our next meeting with you by video conference (WebEx Meetings) rather than by phone if you so choose. We also continue to be available if you have friends or family who might be seeking a consult on their portfolio, wealth or estate planning goals.
Regards,
Mark, Peter, Sarah, Corinne & Andrea