Dear Valued Client,
Equities extended their gains for most of January, leading to overbought conditions. The coronavirus situation is providing an excuse for the bull market to cool off a little. At the moment, it is very unclear as to how serious the situation is and to what extent it will affect the global economy. We are inclined to think that this outbreak will be contained in due course, as with previous outbreaks, without serious damage to the equity markets.
As we have been in the process of reducing risk in our portfolios throughout the month, we should be able to weather this storm just fine. It is our view that the secular uptrend will remain intact and that this pullback is simply a much needed pause as the short term has become very overheated.
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.
