Market Commentary

Making Cents of the Markets

We’ll be back again next week for Making Cents of the Markets on CKNW to talk more about markets, the economy, and more!

Listen live on Wednesday morning at 8:35am here.

 

Beyond the Markets

Get outside and enjoy the wonderful nature Vancouver has to offer with a picnic in the park! Here are our top tips for planning your successful picnic.

Pick your spot.

Whether it’s a scenic ocean view at one of Vancouver’s best beaches or cooling down in the fresh green grass of one of Vancouver’s picnic-friendly parks.

Prepare your menu.

Elevate your picnic by stopping by one of these restaurants offering delicious picnic kits, or try out your chef skills by making your own with some of these seasonal picnic-food recipes.

Pack your blanket, grab some friends, and go enjoy!

Be in the Know

North American markets continued to edge higher this week fueled by robust economic data and ongoing momentum, as the second quarter wrapped up in a positive fashion. The global economy continues to recover with Canadian GDP, US employment numbers, and European manufacturing all coming in above analyst expectations. We were also encouraged by the markets’ resiliency in the face of concerns around the Delta covid variant, as vaccinations have proven to have kept hospitalizations low.

Canadian GDP pulled back 0.3% in April, beating expectations for a 0.8% decline, as temporary restrictions affected growth slightly but investors remain optimistic about better times ahead. The most notable economic update was that the US economy added 850,000 jobs in June though the unemployment rate rose slightly to 5.9%. Most of these jobs came from service-based industries as the US economy continues to return to normality ahead of most nations globally.

With the first half of the year behind us, we look forward to finishing the rest of the year in a similar manner with many tailwinds supporting markets higher. Fiscal stimulus, vaccine traction, reopening momentum, and outsized earnings surprises are likely to contribute to a longstanding bullish narrative. Beyond the markets, we hope that you survived the heatwave and are now enjoying the cooler weather!

 

Our Strategy

We were pleased with the markets rally over the last month and performance for our portfolios, as both growth and value did well over the first half of the year. With many taking long weekends in North America due to Canada Day and 4th of July in the US, markets were relatively quiet and did not lead us to make any material changes within portfolios.

We remain disciplined in managing our exposures at this time, as we expect cyclical areas of the market to continue to lead and the economy to pick up more steam in the second half of the year. Markets remain in a healthy state, though we continue to stay on top of potential risks such as US stimulus issues or delays. Even so, we remain excited about the future and believe that any weakness is an opportunity to add as equities look favourable for years to come.

 

Visual of the Week

With step 3 of the BC Restart Plan here, we wish every one a healthy and happy weekend!

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