Dear Valued Client,
The strong rebound in January strengthens our view that the extremely sharp downward moves of the last quarter were part of a correction phase within a secular bull market rather than the start of a bear market. While equities are showing a lot of strength at the moment, they are also very overbought and we are wary of a classic re-test of the lows before this correction is completed.
However, based on the market’s recent propensity to befuddle even the most experienced of market participants, the expected pullback from the sharp five-week rally will probably carve out a complicated pattern. As such, we remain positioned for a correction and may move to a more bullish position if a pattern for investment opportunities develops.
Our approach has always been to strategize based on probabilities amid uncertainty rather than making bold (reckless) moves based on attempts at predicting certainty. This will not make us heroes with (sometimes) spectacular returns; it means we are unlikely to be caught with spectacularly large drawdowns.
There is an old saying on Wall Street: “There are bold traders and there are old traders, but there are no bold and old traders.”
As always, if you have any questions or wish to discuss whether any of the mentioned investments are suitable for you, please do not hesitate to call us at 604-658-3043 or email.
Best Regards,
Ron Aloni / Alan Goh / Jason Chen
This commentary is intended for information purposes only and does not constitute an offer to buy or sell our products or services nor is it intended as investment and/or financial advice on any subject matter and is provided for your information only. Every effort has been made to ensure the accuracy of its contents. The views contained herein do not necessarily constitute the views of Leede Jones Gable Inc. Leede Jones Gable Inc. is licensed as an investment dealer in every Canadian Province and Territory and is a member of the IIROC and the Canadian Investor Protection Fund.
