Market Commentary

Making Cents of the Markets

New episode of Ready.Set.Retire! Jon and Lori are joined by Jessica Lo from Solus Trust Company to talk about how an independent trust company facilitates the transition of wealth. Whether your looking for a responsible third party to pay your bills when you become incapacitated, act as your executor when you pass, or be the trustee of the trust you setup for your children, an external trust company has plenty of benefits that you may not realize!

Listen here

 

Listen now to the most recent Making Cents of the Markets on CKNW, where we discussed the predicted surge in retirement rates in the remaining half of 2021 and how this could affect markets. We also discussed the 5 secrets to a happy retirement.

Click to listen here.

 

Beyond the Markets

Western Canada’s largest airshow is back this year for another thrilling performance! From August 6-8, you can reserve tickets for the Abbotsford International Airshow to see aircraft performers from around the world. Attendees will each get a 20′ x 20′ dedicated space to park and set up their own viewing area beside the vehicle with lawn chairs, blankets, umbrellas, etc. Bring your own snacks and non-alcoholic refreshments to enjoy during the show!

Reserve your tickets here.

Be in the Know

Global markets started the month off boldly, advancing 1% due to another healthy batch of earnings reports and upbeat corporate commentary that largely downplayed the impact of the Delta variant. Market leadership has started to shift back towards areas of the market tied to the economic recovery, with better-than-expected jobs report out of the US and progress towards the latest infrastructure bill were catalysts behind the move this week.

The US economy added 943k jobs in July, beating analyst expectations, as the unemployment rate dropped to 5.4% (from 5.9% in June). Leisure and hospitality jobs contributed most to the surge as these sectors have been showing consistent gains during the economic reopening. Canada, unfortunately, slightly missed expectations as our economy added 94k jobs in July, and the unemployment rate fell to 7.5%. Despite this miss, our economy remains on the right track, and the silver lining is that most job gains came from permanent work.

While it has taken some time, Democrats and Republicans continue to progress towards the $1.2 trillion bipartisan infrastructure bill, which would be followed by a separate Democrat bill aimed at fulfilling President Biden’s economic agenda. Senate members look to vote to advance the bill over the weekend as both parties are determined to get this done before month-end. We remain optimistic that they will come to an agreement soon, as it would be supportive of markets heading higher.

 

Our Strategy

Our portfolios had a fantastic week as most of our portfolio companies advanced more than markets and drove our performance higher. Most of these came from areas that are sensitive to changes in the economy, as seen in the strength in the consumer discretionary, real estate, and financial sectors. Market health continues to improve and we don’t expect many speed bumps for the remainder of the summer.

To take advantage of these improvements in the markets, we increased our equity exposures throughout the week slightly above targets to take advantage of areas that have pulled back over the past few months. The focus remains on cutting our losers and adding to our winners as this approach has served us well over the years. We remain bullish as the backdrop for equities remains positive with low-interest rates, high savings levels, healthy fund flows, and supportive government initiatives.

 

Visual of the Week

For the first time in a while, we look forward to the rain this weekend as our province (and forests) could use the reprieve!

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