Market Commentary

Making Cents of the Markets

Listen to the latest Making Cents of the Markets on CKNW! This week, we talked about the reopening of the economy, how to help your children break into the real estate market, and what to do after your GIC matures. Listen now here.

 

Beyond the Markets

Brighter days are among us as BC announced its plan to ease pandemic restrictions and return to normalcy by September. Until the second step of the BC plan comes into effect allowing for travel across BC and larger gatherings, we are enjoying exploring within our respective travel zones. We encourage you all to enjoy the outdoors but not straying too far from home with one of these awesome family-friendly hikes!

Be in the Know

Equity markets rebounded this week and look to finish the month on a strong note, as inflation expectations have tempered lately with commodities pulling back off of their highs. Fears of rising rates dissipated with central banks remaining optimistic on economic recovery and a substantial progress still required before increasing interest rates. This supported growth focused areas of the market as technology and consumer discretionary were some of the notable sectors leading this week.

Upbeat earnings results also lifted markets higher with many positives over the past quarter that included profits growing 52%, which was the highest annual growth rate since 2010. Our focus this week was on the Canadian banks that reported robust results, beating analyst expectations, as the vibrant housing market continues to drive demand for mortgage loans. Meanwhile, strong commodity prices and demand for goods led to an increase in loans from corporations. This is an encouraging sign for our economy improving further, as many provinces start to re-open once again.

This was a quiet week for economic updates in Canada with the main highlight being the announcement of “BC’s Restart”, a four-step plan focused on protecting people and safely getting life back to normal. We are optimistic that this plan should work with over 60% of the province having already received their first dose of the vaccine, which has been integral to lowering cases over the last month. Next week our focus shifts towards 1st quarter GDP and employment data, as we expect further improvement.

 

Our Strategy

Our portfolios had a great week due to our balanced approach towards both growth and cyclical sectors, with technology and materials that drove markets higher. Our belief is that investors should remain well diversified and not sell out of growth areas due to fears of inflation, as it is uncertain to whether the spike is temporary or if we are entering a longer term inflationary period.

We remain disciplined and are not affected by old sayings such as “sell in May and go away”, as each year is different! Markets continue to act in a healthy manner, which will remain our guide as this has served us well in the past. As economies continue to re-open, we believe that a new wave of spending will be unleashed that supports investing in markets for years to come.

 

Visual of the Week

Stay positive and be kind to yourself!

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