Market Commentary

Making Cents of the Markets

New episode of Ready.Set.Retire! Lori and Jon are joined by mortgage specialist Cindy Ricketts from Gibbard Group Mortgage Consultants to talk about loans, lenders, and everything in between! Together they discuss the current interest rate environment and will give you some good advice on borrowing options if you are buying real estate in the current market.

Listen here.

 

Listen now to the most recent Making Cents of the Markets on CKNW, where we discussed markets, the economy, and beyond! We talked about Rob Carrick’s article from The Globe and Mail on Six things a brutally honest banker would tell you about mortgages, HELOCs, and market-linked GICs.

Click to listen here.

Click to read the article here.

Beyond the Markets

November is Financial Literacy Month in Canada, where Canadians are encouraged to invest in their financial well-being! This year, the Government of Canada is focusing on the importance of building financial resilience in challenging times and a digital economy. From creating a budget to learning how to deposit a cheque online, the Government of Canada has created key building blocks to help you develop the skills to make your finances flourish!

Learn more about Financial Literacy Month and check out the online resources here.

 

Be in the Know

Global markets had another great week, advancing 1% to 2% due to several positive catalysts, including no change in rates from the US Federal Reserve, improving employment numbers, and encouraging results from Pfizer on their Covid treatment pill. Market health continues to strengthen with all sectors participating in the rally over the last month. Investors remain positive on global recovery accelerating, following North America’s lead.

Earlier this week, the US Federal Reserve kept interest rates at their current lows, but more importantly, reiterated that rate hikes are unlikely before the US reaches full employment. Like in Canada, rates are expected to increase in the middle of next year. The long-awaited end of Covid is starting to become a reality, as Pfizer announced today that its Covid antiviral pill significantly cut the risk of hospitalization or death. This is the second oral treatment behind Merck’s to demonstrate this kind of effectiveness. We see the light at the end of the tunnel as we wait for government organizations to approve these globally.

The Canadian economy added over 31k jobs in October, and although this was slightly below estimates, we still saw the unemployment rate fall for the 5th straight month to 6.7% (from 6.9%). The implementation of proof-of-vaccination requirements allowed for non-essential venues to reopen more safely which contributed to improving employment. The US economy had a strong jobs report, adding over 531k jobs which was above expectations as their unemployment rate dropped to 4.6% (from 4.8%). We look forward to this momentum continuing throughout the coming months.

 

Our Strategy

We were pleased with the performance of our portfolios this week as most of our companies had steady, positive progress, with highlights from economically sensitive sectors such as airlines, retailers, and industrials. After a strong rally in technology in October, we are now starting to see capital shift back towards areas tied to the economy as positive economic data and encouraging results from Covid treatments provide constructive incentives for these areas to shine.

This week we made little changes to portfolios as we digested more earnings announcements and added to stocks that we believe have the most upside moving forward. We remain balanced in our exposures as we hold many hedges for inflation that include REITs, commodity producers, and stocks in general. Remaining disciplined and patient in this bull market is currently the key to success!

 

Visual of the Week

Thursday November 11th is Remembrance Day where we honor all those who served and continue to serve to protect our freedoms in our great country.

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