Weekly Insights

Feb 12, 2018 | Ronald J. Wilcock


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February 8, 2018 - Insights into the equity, fixed-income, currency and commodity markets from RBC Wealth Management.

No, the World is not ending...despite the headlines. Yes, we had a record point drop in the DOW. However, keep in mind how much higher the markets are in point terms now than they used to be. There have been 2 days recently where the DJIA (DOW) was down about 1,000 points each. Today, that many points equates to about a -4% drop. On Black Monday of October 19, 1987, the DOW fell exactly 508 points.Then, that was a -22.61% drop.

 

It depends on the market and the timing but, let’s ballpark and say markets are now down around 10% from their highs of a couple of weeks ago. Even at half that, we haven’t had that kind of a dip for almost 2 years. And now we are much more confident in the global economy than we were then. Can you say buying opportunity?

 

Markets could well dip further. In fact we expect that this may take longer to play out. Or, it could be over at any time. Remember Brexit when the headlines would have you think the sky was falling on the markets? Only a couple of days later they started moving steadily upwards. How about the Trump election when there was sudden doom and gloom and Pre-markets dropped violently overnight? By morning open they were back near even and then continued moving up. We don’t want to take that chance of missing it. So, we have been buyers. But, we still have more dry powder and will watch for further entry points as this plays out. 

 

 

Click Here for Last Week's Blog

 

RRSP REMINDER – The deadline is Thursday March 1st

 

This Past Week; Come on, you already know.

 

2017 – The numbers are in and it was another fantastic year of results for our Proprietary Guided Portfolios! The RBC DS system of, by far the most and the best analysts, along with the highest level of Wealth Management offerings in the industry, then combined with a 34 year track record of Outperforming the Markets/Benchmarks, is unmatched in the industry and continues!

 

2018 – Our analysts see a very low chance of recession historically speaking. While we never know what can happen, at this point our main recessionary indicators are not even yellow never mind red. We are all green for go or growth. One of my favorite and most seasoned analysts, DS Portfolio Strategist Jim Allworth, likes to say we can predict recessions but, we can’t predict pullbacks. They are a normal part of a Secular Bull Market. Given everything we know at this point in time, we wouldn't be surprised at all to see a normal market pullback in 2018 (especially since we did not have one in 2017). We would expect though, that it will be a buying opportunity and markets would move upward and onward from that. There are certainly no promises, guarantees, or assurances. At this point, our analysts believe we should give equities the benefit of the doubt.

 

Global Insight WEEKLY

A calm economy and uncalm markets?

February 8, 2018

 

The Weekend/Weather; Enjoy a typical Canadian winter weekend by forgetting about the headlines and watching some Olympics!

GO CANADA!!!!!

 

My team provides a proven, comprehensive approach to wealth management for business owners and families. Should you know of any friends, family, or associates whom you think would benefit from our professional services, it would be my pleasure to talk with them to learn how we can help. Contact Us Here to be added to our Weekly Newsletter or to ask for a complimentary portfolio review.