Market Commentary

Making Cents of the Markets

New episode of Ready.Set.Retire! Lori and Jon are talking about retirement and real estate. Together they discuss everything from downsizing your home, rental income, helping your children break into the real estate market, and more!

Listen here.

Listen to this week’s Making Cents of the Markets on CKNW. We talked about what to expect from markets as the economy starts to reopen, and things to look for when choosing the right financial advisor for you.

Click to listen here.

Beyond the Markets

Calling all art enthusiasts! From now until April 12th you can discover artists from across Canada with the 11th Annual North Shore Art Crawl! This year North Van Arts is offering the event online complete with curated webpages of visual artists working in diverse medias. With over 60 participating artists, the event lets you explore deep into the different studio’s processes, artwork, and inspiration behind their creative vision. Whether you are looking for West Coast landscapes, florals, textiles, photography, glasswork, portraits, pottery, nature scenes, abstract, jewellery, gift ideas or more, this art crawl has it.

Check it out here.

Be in the Know

After a strong March, we are finishing this week at new all-time highs with economic data confirming that the global economy is picking up speed. While we remained concerned with rising cases in Canada, we are optimistic that additional vaccinations should lead to immediate improvement as they have in the US and UK. Many states in the US have started to lift all restrictions which is why we continue to believe that the US economy will outperform its peers in the near term future as things return to normal in the coming months.

Growth-focused sectors such as technology and consumer discretionary led the market as investors now believe that inflation increases will be short-term in nature and that central banks will be patient in increasing interest rates. Corporate tax rates in the US may not increase as much as expected as negotiations on infrastructure spending and taxes have begun and Democrats are considering alternatives that would not hinder the recovery as much as higher corporate taxes alone.

The most notable economic news this week was another strong jobs report out of Canada as the economy beat expectations adding over 300,000 jobs in March as the unemployment rate declined further to 7.5% from 8.2% in February. Total employment is only 1.5% off the pre-pandemic level a year ago which is encouraging though we understand that recent restrictions will likely delay further improvements until early summer.

Our Strategy

Our portfolios moved in line with benchmarks as they inched closer to our target equity allocations with recent additions in areas to benefit from the re-opening of the US economy that includes consumer discretionary and materials. While technology bounced back this week, we continue to favour areas that benefit from coming out of a recession and from the re-opening of the global economy.

Earnings season begins in 2 weeks which we believe will be another tailwind to lift markets higher. Analysts expect year-over-year earnings growth of 25% for the first quarter which would be the highest growth reported in more than 10 years. We would not be surprised to see actual results come in better than expected which is why we remain bullish moving forward.

Visual of the Week

We hope that everyone takes additional precautions to keep safe and healthy over the coming months until vaccinations increase – there is light at the end of the tunnel!

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.