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Quick Market Update

Quick Market Update

Good afternoon,

Quick note on the markets. Despite a tough week given market performance, we are still having a good year.

The TSX is negative for the year, we are positive year-to-date. I’ve created the chart below (S&P/TSX Composite YTD) which shows where we stand in the correction. The initial correction we had only lasted 10 trading days from January 26 to February 10 – markets corrected over 10%. We earned a good amount back, but a 10-day correction after 500+ days to the upside is simply not enough. If you look below, we will almost surely test the checkered line bottom, and possibly test the firm red line.

Source: Bloomberg

We are looking at purchases, not sales – however, we are not prepared buy anything just yet.  We did sell our Loblaws in March and increased cash to the highest level in a few years – portfolios are more conservatively invested than in the previous January correction. We will continue to buy companies with strong balance sheets, ensuring no mistakes are made during a rate rising cycle.

When you look longer term on the 10-year time horizon (below), I’ve added a trend line to emphasize when the bull market broke out – we are not yet concerned about cracks in the secular bull market. The economy remains strong, and this would be a market correction, not an economic correction, so a major decline is less likely.

Source: Bloomberg

These corrections are normal and healthy, just no fun for investors.

Feel free to call in if you have any questions or concerns, we are watching closely and will act when necessary.

Have a great day – go have some fun,
Chris, Steve, Rick

The information contained herein has been provided for information purposes only.  The information has been drawn from sources believed to be reliable.  Graphs, charts and other numbers 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.  This does not constitute a recommendation or solicitation to buy or sell securities of any kind. Market conditions may change which may impact the information contained in this document.  Wellington-Altus Private Wealth Inc. (WAPW) does not guarantee the accuracy or completeness of the information contained herein, nor does WAPW assume any liability for any loss that may result from the reliance by any person upon any such information or opinions.  Before acting on any of the above, please contact me for individual financial advice based on your personal circumstances.  All insurance products and services are offered by life licensed advisors of Wellington-Altus insurance Inc. or other insurance companies separate from WAPW.  WAPW is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.