To my clients:
It was an up week for North American stock markets with the Canadian TSX finishing up 0.7%; the U.S. Dow Jones Index up 5.4%; and the U.S. S&P 500 up 6.5%.
It’s an exceedingly short update this week as I find myself in isolation dealing with a covid infection (diagnosed Wednesday afternoon). I’d say my symptoms are generally mild, but I’d be lying if I didn’t admit to being a bit foggy.
Luckily, by the time of my diagnosis Wednesday afternoon, I had already reached out to the vast majority of clients as I had promised in last Friday’s update. The purpose of speaking with clients was simply to check-in and see how individuals might be coping with the unsettled markets. While there was a range of perspectives, I was pleased to learn that most clients are taking events in stride and trusting in my and RBC’s judgement. A sincere THANK YOU! If you were one of the few I didn’t speak with – my equally sincere apologies. I hope to be able to do so next week.
To reiterate, as I said in my calls, while the odds of recession have certainly risen, I and RBC continue to view recession as a lower probability event than the odds of no recession. However, even if we are wrong (and we might be), markets (prior to this week’s strong gains) appear to have already priced in a mild recession… in other words, most of the damage may well have been done already. While 2022 looks destined to be a negative year for markets (as 1 in 4 years statistically are), I’d expect there to be some additional recovery through year end.
That’s it for this week. All the best,
Nick
Nick Scholte, CIM, FCSI
Senior Portfolio Manager
Scholte Wealth Management
RBC Dominion Securities Inc. │ Tel: 604.257.7569 │ Fax: 604.235.9950
3200-1055 West Georgia │ Vancouver, BC │ V6E 3P3
Toll Free: 1.844.665.9900 │Email: nick.scholte@rbc.com
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