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Update on Market and Economic Developments this Week due to COVID-19 Thumbnail

Update on Market and Economic Developments this Week due to COVID-19

I am writing to update you on recent financial market and economic developments amidst the ongoing COVID-19 outbreak.

What were the significant developments this week?

  • Canadian and U.S. markets remained volatile, fluctuating between strong moves up and heavy moves down throughout the week and demonstrating that investors are still not confident in how this crisis will play out. 
  • The federal government’s commitment to fiscal support for Canadians reached $176 billion, after it announced a plan to subsidize 75% of wages for workers of eligible businesses.
  • Oil prices sank even lower to begin the week before rebounding. U.S. President Donald Trump held a “prolonged” call with Russian President Vladimir Putin, where the two agreed to further discussions between energy officials in the two countries.
  • The number of confirmed COVID-19 cases worldwide surpassed one million and continued to grow exponentially, with many countries keeping social distancing and lock-down measures in force. 
How does this affect my investments? 

As recent market swings have demonstrated, it’s impossible to time short-term movements to avoid losses and capture gains. This is why we built your portfolio as a long-term plan. Attempts to capitalize on events such as these with short-term planning can lead to you missing out on the consistent long-term growth that forms the basis of successful financial plans. I know that it can be difficult to avoid the daily chatter surrounding the market’s hourly reaction to events, which is why I am sending you this weekly recap. It is a way to both help you block out the daily noise and speculation, while providing you clarity on recent developments. Yet remember that you and I did not build a weekly portfolio. The items above are major news stories today, but when the world emerges from this event, they are likely to serve as footnotes to a portfolio that has demonstrated its strength over the long run. If your situation or objectives have changed, we can discuss how this may affect your plans. Please do not hesitate to contact me at (709) 256-4025.

P.S. Anyone that has the financial means to take advantage of the market dislocation by investing either by lump sum or breaking up the payments and investing over several months, I would encourage you to do so. Anyone that would like a virtual face to face meeting through Zoom Meeting, please let me know, it is a simple email from me and you open up the emailed meeting at the time we set for the meeting. You can do this on a lap top (with a camera) a cell phone, iPad or the like. Week by Week, we will get through this together! Please take good care of You and Your Family, my Friends! 

Helping You Live Life Confidently!


Tim Hazlett, CFP, RRC