Market Commentary

September 2020 Update

Wise to resolve, and patient to perform. – Homer


Markets

A number of indicators are pointing to solid economic performance, jointly supported by government spending programs, central bank easing, and what I would call a newfound spirit of public cooperation. Particularly, US new home sales, which has been an important leading indicator in past recoveries, made one of its biggest moves higher ever in August. Durable goods orders, manufacturing and service purchasing, railway and freight shipping data, and even mall traffic are showing up, up and away. We must not discount the possibility that a more robust economic expansion is underway than was generally anticipated even a month ago. While some parts of the economy will undoubtedly remain a lasting concern, positioning ourselves at the forefront of the expansion is paramount to success.

Our systematic models are picking up on this positivity and continue to align our portfolios with higher growth sectors of the market. Existing trends in tech, knowledge-based businesses and precious metals companies remain strong, while I’ve noticed a new positive trend emerging in transportation and shipping. Bond prices are at all-time highs. One curious hold-out is that dividend stocks, which tend to be more conservative, mature businesses, continue to lag the market recovery.

Financial Planning
Retirement and estate planning is not just about money, and it’s not even just about “real life” anymore. Increasingly as Boomers live online, we must plan and consider the digital footprints we leave behind. I encourage all clients and readers to incorporate this digital aspect into their estate plans, specifying how Executors are to manage various online accounts and media. A simple first step is to coordinate the record keeping of all accounts and passwords in one place. I encourage all to look into a number of free and paid password management solutions to bridge the gap.

Recommended reading
Capture the power of a growth mindset: https://fs.blog/2015/03/carol-dweck-mindset/

Pondering long term impacts of remote work: https://www.theatlantic.com/ideas/archive/2020/08/just-small-shift-remote-work-could-change-everything/614980/

Warren Buffett is best known as a value investor, but is he secretly a trend follower? https://thenakedhedgie.com/2016/07/13/value-investing-vs-trend-following-which-is-better/

An interesting take on reality vs perception: https://moretothat.com/reality-is-never-strange-we-are/

A comprehensive overview of Modern Monetary Theory, or why the government can print as much money as it likes: https://newrepublic.com/article/158221/government-can-afford-anythi-wants

Cordially,

Ben W. Kizemchuk
Portfolio Manager & Investment Advisor
Wellington-Altus Private Wealth

Share on linkedin
Share on facebook
Share on twitter
Share on print
Share on email

Recent Posts

The opinions contained herein are the opinions of the author and readers should not assume they reflect the opinions or recommendations of Wellington-Altus Private Wealth. Assumptions, opinions and information constitute the author’s judgement as of the date this material and subject to change without notice. We do not warrant the completeness or accuracy of this material, and it should not be relied upon as such. Before acting on any recommendation, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Graphs and charts are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance. All third party products and services referred to or advertised in this presentation are sold by the company or organization named. While these products or services may serve as valuable aids to the independent investor, WAPW does not specifically endorse any of these products or services. The third party products and services referred to, or advertised in this presentation, are available as a convenience to its customers only, and WAPW is not liable for any claims, losses or damages however arising out of any purchase or use of third party products or services. All insurance products and services are offered by life licensed advisors of Wellington-Altus. Wellington-Altus Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. All trademarks are the property of their respective owners.