Market Commentary

Making Cents of the Markets

Listen now to the most recent Making Cents of the Markets on CKNW, where we talked about how interest rates are impacting Canadians right now. We also discussed investment circumstances that affect women differently, including situations that leave you unexpectedly managing your finances on your own after your spouse gets sick or passes away. Listen to hear tips on how to take charge of your finances and plan for the future!

Click to listen here.

 

Beyond the Markets

Check out Vancouver’s Pacific Arts Market this Oct. 31 for some fun and inspiring Trick or Treating! Stop in between 11:30am – 5:30pm for some beautiful treats, art and craftwork. If you come in a costume, you’ll get a $25 Pacific Arts Market gift card to use on your next visit.

For more information, click here.

 

Be in the Know

North American markets were mixed this week with US indices continuing higher while the Canadian market pulled back slightly. Large technology stocks out of the US drove most of the gains after reporting strong 3rd quarter results as most other sectors softened naturally after a rally in the last month. Investors had a busy week digesting earnings reports from some of the largest companies in the world while also receiving important updates on GDP growth and interest rates.

About half of the market has reported their 3rd quarter results as it looks to be another great quarter with over 80% of companies beating analyst estimates for earnings. All sectors are reporting year-over-year growth with economically sensitive sectors along with technology reporting the highest growth rates. Despite robust growth, we haven’t seen much of an increase in future guidance as companies remain conservative due to continued supply chain issues and increased wage costs. We remain confident that equities are one of the best ways to hedge inflation as most companies can pass on these increased costs to consumers.

Economically speaking, the most notable news was that the Bank of Canada kept interest rates at the lows though is ending their quantitative easing program and expects to start hiking rates sometime in the second half of next year. Slower growth has delayed interest rate increases with GDP in Canada and the US both coming in at 2% for the 3rd quarter, which missed expectations above 2.5%. Due to extended challenges from the pandemic, economic growth is expected to be pushed into next year as the Bank of Canada expects 4.5% GDP growth for 2022.

 

Our Strategy

Our portfolios were relatively flat over the past week as strength in technology and consumer discretionary stocks was offset by a pullback in materials and industrials. Weaker than expected GDP growth rates weighed on these areas though we remain optimistic that these areas will lead as covid cases have come down dramatically as the economic recovery gets back on track.

Highlights from earnings this week include Google and Microsoft that both exceeded expectations, with record quarters as consumers continue to spend their time and dollars online and on new technology. While we have been pleased with most of the results so far, we continue to make shifts to position portfolios in the strongest areas of the market as seasonality bodes well for a rally into the end of the year.

 

Visual of the Week

Wishing everyone a safe and Happy Halloween!

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.

CANACCORD GENUITY WEALTH MANAGEMENT IS A DIVISION OF CANACCORD GENUITY CORP., MEMBER-CANADIAN INVESTOR PROTECTION FUND AND THE INVESTMENT INDUSTRY REGULATORY ORGANIZATION OF CANADA