Money Thoughts – March

DLD Quarterly Money Thoughts (March 2022) includes Market Volatility, DLD 2022 Market Outlook Webinar (Recording available) and DLD in the Media.

Market Volatility

As cliche as it sounds, we continue to live in unprecedented times. The conflict in Ukraine has unsettled people and markets around the world. Our thoughts go out to those most impacted by the conflict.

Key issues we’ve been facing include:

1. Geopolitical risks: 
With regards to Russia and Ukraine, there is no guarantee things won’t deteriorate further in the near term. However, the chart below should serve as a reminder that markets historically tend to trend upwards over the long term (despite momentary dips during crises).

Market Volatility / Geopolitical risks

2. Pandemic disruptions and inflation:
Supply chain pressures are starting to ease, which should ultimately allow inflation to settle lower leaving little room for upside surprises on this front. However, the pandemic still remains a risk to global supply chains and inflation’s normalization process.
Even if an increasing number of countries are moving away from severe restrictions in their fight against the virus, this is not the case for China (which is central to global supply) and cannot afford to let the virus circulate freely.

3. A new interest rate cycle:
Looking back at the last 30 years, an acclimatization process whereby stocks tend to react nervously at the onset of a rate-hike cycle is not new or unusual. History has shown U.S. stocks were usually quite volatile in the months following the first hike. However, at the end of the 12-month horizon, total returns were always in positive territory (see the following chart).

A new interest rate cycle

How we will help to keep your emotions in check:

1. Stay focused on a long-term goal to help overcome temporary setbacks in markets.
2. Avoid panic selling as it often rhymes with selling low and missing the rebound.
3. Mitigate volatility by investing in a diversified portfolio of asset classes, all of which react differently to evolving market conditions.

Source: National Bank Investments

Webinar: 2022 Market Outlook

DLD 2022 Market Outlook Webinar

On Thursday, February 10, 2022 – we had special guest speaker Rocco Vessio of Setanta Investments Canada provided an overview of what we can expect to see in the markets in 2022, addressing hot topics such as inflation and market volatility. He also talked about how the fund managers are paid and addressed common questions around active and passive investing.

DLD in the Media

We were recently featured in two publications where Kelly Ho provided her expertise on a couple of very common issues Canadians face:

1) CTV News – Top Tips to tame household debt 

2) The Globe and Mail – How middle aged Canadians can make up for lost time on RRSPs

Please do not hesitate to contact us if you have any questions or if there’s anything we can do to help.

Thank you for your time.
Dave, Kelly and Ryan

E&OE