The Increasing Rate of Change
It has been said that “there are decades where nothing seems to happen and then there are weeks where decades happen.” This spring was no exception. We have experienced change that occurred at unprecedented speeds, including physical distancing, home isolation and the voluntary shut down of economies. This led to equally unprecedented reactions: oil futures prices falling to negative levels and rebounding, entire industries being shut down, and record unemployment levels.
Equity markets reacted in a similar manner, falling and then rallying quickly. Typical bear market cycles last between 18 to 36 months. However, this past spring, we saw one that was compressed into a matter of weeks. Global policy responses have also been faster — and deeper — than ever. From the onset of the crisis, central banks have engaged in significant stimulus efforts in an attempt to stem the effects of the crisis. This increase in liquidity has likely been one reason why the equity markets advanced in April and May, despite what was happening on the ground.
What does the path forward look like?
Click here to read the full article and download a PDF with our 4 page June 2020 Update from The Wong Group.
In this issue are five articles of interest:
- Consider the Merits of Dollar-Cost Averaging
- What Comes After a Bear Market?
- What is the Economic Path Forward?
- The End of the Office Era
- 2020 Changes to RRIF Withdrawal Factors
Click here to read or download the full newsletter.
As always, we are present, focused and prepared for opportunities to help you and your family. Please feel free to call me or my team at 778 655-2410.
Sincerely,
Maili Wong and The Wong Group at Wellington-Altus Private Wealth
