Dear Valued Client,
Equity markets continued to show strength in the face of negative factors such as recession fears, slowing earnings growth, trade tensions, Brexit and political concerns. A sharp selloff early in the month, the third selling squall this year, was easily overcome and markets are near the highs again. The ability of the markets to repeatedly shrug off selling pressure is an indication they are probably going to eventually break out to the upside for another leg up in this secular bull market.
The Canadian market, which was starting to show strength relative to the U.S. market earlier this year, is once again lagging the gains in the U.S. market. This is most likely due to investor disenchantment over election results.
We are positioned for an eventual breakout to the upside and have been gradually increasing the risk profile in the equity portions of our portfolios by shifting allocations from defensive sectors to more cyclical sectors.
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.
