Dear Valued Client,
The sudden breakdown trade negotiations between the U.S. and China triggered the start of a correction in the equity markets. While there is some volatility, the selloff thus far has been relatively orderly and much different from the one in December last year.
The market is very much news driven at the moment, especially on the trade front; it is uncertain how this corrective phase will play out. It will probably take a few months for the markets to adjust to the growing realization that trade negotiations could take very much longer than expected. but positive developments at any moment would put an end the corrective phase very quickly.
In any case, this is a much needed correction after four months of steep gains. It is healthy and it sets up the market up for another leg up in the long-term bull trend. As with previous corrections, the defensive positions and income from dividends and interest will bolster our portfolios as we wait for the long-term uptrend to re-establish itself. We will also be on the lookout for opportunities to make advantageous changes in equity positions during this phase.
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.
