Dear Valued Client,
Rotation was the name of the game for February as recovery stocks made good gains and pandemic stocks suffered from heavy profit taking. Futurist and meme stocks were extremely volatile as these are what the tens of millions of novice investors and gamblers are focusing on. Financials were up strongly again this month, boosted by rising long term interest rates and a steepening yield curve. As we are significantly overweight this sector, our portfolios are performing well this month.
A correction in the equity markets seems to be looming and perhaps even under way already, as growth stocks have started to turn down sharply. Reddit and other novice investor forums are full of sob stories these days as opposed to the rampant yet naïve jubilation a few weeks ago. We expect these meme and futurist stocks to continue to correct while the old economy stocks undergo a milder correction. We remain bullish for the medium and long term, and expect that the markets will end the year higher than where they are today.
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.
