Market Volatility Resources

In an economic climate that is constantly evolving and changing, this article presents key wealth planning strategies that you can consider to manage your financial well-being during this period of heightened volatility. There are many tax, estate and financial planning opportunities to explore and set you up for long-term success. In fact, certain wealth planning strategies can be even more effective during a market downturn. This article discusses strategies to help you manage the tax you pay now and in the future as well as other wealth building strategies you may wish to consider during this unprecedented time.

Mark Bayko, Head of the Portfolio Advisory Group, and Dominick Hardy, Canadian Portfolio Advisor, discuss the implications of COVID-19 and the oil price decline on dividend investors in Canada. They address the pipeline and real estate sectors in particular, discuss a framework for searching for sustainable dividends, and suggest investors should remain diversified to benefit from an eventual economic recovery. (approximately 19-minute duration)

The economic consequences of COVID-19 are anything but clear-cut. Yet it’s not just the depth and duration of the downturn that matters. The key is how quickly the rebound occurs. And with equity markets bouncing back forcefully even as uncertainties swirl, investors should brace themselves for more volatility—both to the downside and upside.

RBC Wealth Management’s latest thoughts on COVID-19 and its implications for the economic and investment outlook. Mark Bayko and Jim Allworth, both members of the firm’s Global Portfolio Advisory Committee, provide an update on the outlook. Despite the view that significant uncertainty remains near-term with respect to the path towards economic recovery, they continue to believe the longer-term drivers of earnings and cash flows for successful businesses remain intact. (approximately 14 minute duration)

With the recent depreciation in the Canadian dollar compared to the U.S. dollar, we think it is important to look at the Portfolio Advisory Group’s (PAG) views on currency hedging in the fixed income and equity asset classes. We also examine unique factors to consider prior to implementing a currency hedge within a portfolio.

Janet Engels, Head of the Portfolio Advisory Group – U.S., talked to Gerard Cassidy, RBC Capital Markets’ Head of U.S. Bank Equity Strategy, about the differences between today’s coronavirus shock and the global financial crisis, the stability of banks, and, importantly, the sustainability of dividends. (approximately 21-minute duration)

After a drop of 34% into last Monday’s low, followed by intense rallies in three of the next four days, some wonder if we are already emerging from the shortest bear market in history. We don’t believe that there is sufficient evidence of that, although we appear to have entered a new phase of the crisis. One thing, though, is certain. The market’s response to COVID-19 and its still unknown impact on the economy is massive. In only five weeks, this bear market has already tied for the tenth most damaging of the past 140 years.

As we continue in this period of tempered economic growth and uncertainty on the back of the COVID-19 crisis and an oil price war, we think it is important to take a closer look at the Canadian banks, particularly the sustainability of their dividends.

With the recent depreciation in the Canadian dollar compared to the U.S. dollar, we think it is important to look at the Portfolio Advisory Group’s (PAG) views on currency hedging in the fixed income and equity asset classes. We also examine unique factors to consider prior to implementing a currency hedge within a portfolio. (approximately 14-minute duration)

Day-to-day life is nearly at a standstill, and like a battering ram, the coronavirus is hammering economies and markets. It’s looking more and more likely that a deep economic downturn will occur. But we believe that COVID-19’s unique circumstances mean that the contours of the downturn and the subsequent recovery could be unique as well.

Very interesting presentation containing a series of charts examining historic bear markets and volatility - provides some context for the current environment.

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