Dear Valued Client,
Equity indices in North America stayed at or near all-time highs for most of July with a few attempts at a more significant correction attracting strong buying on the dip. As far as the overbought condition of the market goes, there are currently two main views.
One view is that the rotational correction for the past few months has been on-going with different sectors alternating between making all-time highs and pulling back in consolidation. The other view is that the market is overdue for a more significant correction of around 10% and then a subsequent move back up to new highs again.
Our view is that if there is to be a correction, it would be short term in nature and will not threaten the long-term bullish trend. Our strategy at this point remains one of sitting, collecting dividends and interest, and letting cash slightly build up. As well, we are rebalancing asset mixes as equity components get overweight.
In a secular bull market, it is the sitting that makes investors the bulk of the returns, not the trading of short term trends within it.
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 604-658-3056 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.
