Market Commentary

Making Cents of the Markets

New episode of Ready.Set.Retire! In support of World Alzheimer’s Month, Lori and Jon are bringing awareness and understanding to Dementia. They discuss how to recognize the signs and symptoms of Alzheimer’s, and how your advisor can help you and your family address the planning needs for your loved ones.

Listen here.

 

Listen now to the most recent Making Cents of the Markets on CKNW, where we discussed the latest in markets and on interest rates from the Bank of Canada. We also talked about the upcoming Canadian Federal Election, and financial planning for someone with Dementia for World Alzheimer’s Month.

Click to listen here.

 

Beyond the Markets

September is World Alzheimer’s Month, and you can show support while enjoying BC’s breathtaking scenery by joining in on the Climb for Alzheimer’s. On September 19, go solo or grab a group of friends to take on the Grouse Grind in this annual event hosted by the Alzheimer Society of BC. The funds raised will go towards educating and mobilizing a broader community of care around people with Dementia and supporting valuable research into the disease and people living with it.

Register or donate here.

 

Be in the Know

North American markets pulled back from their recent all-time highs, declining 1% to 2%. This likely comes with investors’ concerns about the near-term effects of a fourth wave and inflation concerns that are leading central banks to taper certain stimulus measures. Earlier in the week in Europe, we saw the European Central Bank announced that they would trim bond purchases, and Russia and Peru both increased their interest rates to combat inflation. These actions appear to be emerging as a global trend, anticipating a much-anticipated interest rate meeting out of the US later this month.

In fact, many international nations have raised rates lately as their inflation levels have been much higher than in North America. Back at home, the Bank of Canada held interest rates low this week, likely because near-term uncertainties tied to the economic recovery have led our central bank to remain accommodative to support a comeback. This has worked to our advantage as we saw the addition of over 90,000 jobs in August and our unemployment rate drop from 7.5% to 7.1%. Additionally, most provinces had implemented the final stages of their public reopening plans.

While September markets can historically feel a bit lethargic, we welcome any weakness as an opportunity for a healthy reset to set markets up for a year-end rally. Market conditions are bullish with earnings growth continuing to come in higher than expected. We look forward to managing through the coming months as we have an active plan to navigate through any uncertainty!

 

Our Strategy

Our portfolios held up well through changing market conditions this week and saw less volatility than the benchmarks, mostly due to the support of the stronger US dollar. Our highlight this week was a striking earnings report from Lululemon that sent the stock over 10% higher, with growth and future outlooks continuing to beat expectations. We made some minor changes in our portfolios this week and are comfortable with our current exposures with equities at our target levels.

Our plan forward is to remain disciplined with our strategy and raise cash only if we experience weaker markets. We remain bullish on the markets however we know that seasonality can have an effect on investor sentiment. We also believe any pullback would be short-lived as it has been in the past. If this happens, we plan to reallocate capital towards the best opportunities with the goal always to end the year on a strong note!

 

Visual of the Week

As proud Canadians, we congratulate Canada’s Leylah Fernandez in reaching the US Open Women’s Final tomorrow and look forward to seeing her compete for gold! (1:20 PM PST)

The comments and opinions expressed in this newsletter are solely the work of Pinkowski Wealth Management, not an official publication of Canaccord Genuity Corp., and may differ from the opinion of Canaccord Genuity Corp’s. Research Department. Accordingly, they should not be considered as representative of Canaccord Genuity Corp’s. beliefs, opinions or recommendations. All information is given as of the date appearing in this newsletter, is for general information only, does not constitute legal or tax advice, and the author Pinkowski Wealth Management does not assume any obligation to update it or to advise on further developments related. All information included herein has been compiled from sources believed to be reliable, but its accuracy and completeness is not guaranteed, nor in providing it do the author or Canaccord Genuity Corp. assume any liability.

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