Dear Valued Client,
Equities are holding steady despite a sharp selloff on recession fears brought on by an inversion of the yield curve. Since 1962, all recessions have been preceded by a yield curve inversion. However, it is also important to note that not all inversions lead to recessions. While it is quite clear that global economic growth is weakening, a U.S.-China trade deal could provide a jolt to prevent recessions in various economies from developing.
We are maintaining a cautiously bullish view in the long and intermediate terms, and remain positioned as such. Our positions in the Utilities sector, in REITs and in interest-sensitive securities are performing particularly well this month as longer term interest rates decline. There was an increase in volatility in March, but the effect in our portfolios was tempered by the aforementioned positions in the defensive sectors. We are inclined to hold this slightly defensive stance until the economic picture becomes clearer.
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.
