Smart Investments
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Interested in or concerned about the energy sector? Here is an investor-friendly commentary from Ninepoint's Eric Nuttall...

We are pleased to share this link for an upcoming Investor Series webcast, open to the public! On Nov 24th, tune in at 11am PST... Webcast details One of the leading names in socially responsible investing (SRI), VCIM helps Canadians achieve their wealth-creation goals in a way that promotes lasting solutions to our greatest environmental and social challenges. Andrew Simpson and Shelly Dhawan will discuss the key pillars of SRI, why it continues to see exponential growth am...ong retail and institutional investors, and how the VCIM team builds diversified SRI portfolios for virtually every investor need. JOIN US for the second webcast in this new live series by iA Wealth!

When the well is dry, we know the worth of water. -Benjamin Franklin

This is a neat page where you can track which stocks are benefitting from "stay at home" trends, "work from home", and consumer "stockpiling"... and suffering (e.g., travel and live entertainment)...

For small businesses...

For business owners' information...

The *friend* in everyone's ear right now: "I expect a 'crash' amidst the election and pandemic, so you should move your money to gold, bonds, and cash Your broken record of an advisor: "Yes, it’s tough right now because there are enough 'ugly' factors in the market to warrant concern but I never ever suggest trying to time the market. Your friend might be right. If they are right, then when things get really ugly, and everyone goes back to the panic we saw in spring 2020 ('T...his is the start of the worst recession since the Great Depression, this will be another Great Depression, there’s no coming back from this'), I’d suggest then would be a great time to rebalance from the low risk portion of your portfolio to higher risk. But in case your friend is wrong that’s why I don’t suggest cashing out 'just in case' there’s a big downturn. Because what if there’s not? Then when do you get back in? "Is there anything for which you anticipate needing a withdrawal in the next few years? For anything that can remain invested for a few years, keep right on going if we do see a downturn, that’s even more favourable for any dollars you are able to throw into the market, because market downturns mean you get to 'buy low'. Market downturns are only materially damaging to investors who need to access their investment during the downturn. Those who can continue investing throughout a downturn ultimately benefit from having bought while prices were low. "Will there be volatility? Yes. Do we have a crystal ball? I always wish yes and the answer is always no The US political situation is unsteady with an extremely contentious election looming (underway, in fact), and significant possibility of civil unrest following whomever is elected. On top of it all, the pandemic! It is a lot, and therefore I do anticipate significant volatility, but my best advice would be to stay your course and carry on. If you have excellent diversification in your portfolio, I am not concerned long-term."

Do you believe that the environmental equity space presents a tremendous investment opportunity over the next decade? Want to invest in companies that are actively participating in combatting climate change? Ask us which mutual fund has JinkoSolar Holding Co Ltd (JKS) as its largest holding! This stock is up +275% over the last 6 months. Why? It became the last of the three US-listed Chinese solar companies to announce plans to list shares in its principal operating subsidiary in Shanghai.

Here is a nice Q3 market update video... check it out! https://www.sunlifeglobalinvestments.com//q3-2020-market-/

Social justice, corporate responsibility, ESG on your mind? NEI Investments' blog is a great place to learn what they're up to in that regard! They're one of a variety of fund companies who offer SRI (socially responsible investment mandates).

What a great article, shared with us by Tracy Anaka Mortgage Broker. Paying your bills together, for example... good learning opportunity for your littles!

From Sun Life Global Investments (Canada) Inc. On Wednesday July 8, Canada’s Finance Minister Bill Morneau presented an Economic and Fiscal Snapshot (EFS) in parliament. The snapshot provided information on the current state of the Canadian economy and the federal government’s response to support Canadians during the COVID-19 pandemic. It was the federal government’s first public assessment of the country’s economic and financial situation since the COVID-19 pandemic forced... provinces into lockdown in March. Fiscal projections from the government are critical in providing greater certainty to Canadian businesses as they start to open up, said Sadiq S. Adatia, Chief Investment Officer at Sun Life Global Investments. They give companies an indication of the government’s current financial health and how long fiscal support programs are likely to continue. Here are some highlights from the EFS: Canada’s federal deficit for 2020-21 is expected to rise to $343.2 billion from the $34.4 billion deficit projected before the pandemic. Much of the increase can be attributed to $212 billion in direct support measures the federal government is providing to individuals and businesses. Canada’s economic slowdown is estimated to have added another $81.3 billion to the deficit in 2020-21 The economy is projected to shrink by 6.8% this year before bouncing back by 5.5% next year, making this crisis Canada’s worst economic contraction since the Great Depression, and more than twice as large as the contraction in 2009-10 following the Global Financial Crisis. As a result, Canada’s debt-to-GDP ratio is expected to rise from 31% in 2019-20 to 49% in 2020-21. Between February and April, 2020, 5.5 million Canadians either lost their jobs or saw their work hours significantly reduced. Canada’s unemployment rate rose to 13.7% in May the highest rise on record from a pre-crisis low of 5.5% in January. As of July 3, 688,000 applicants have been approved for about $27.41 billion in Canada Emergency Business Account (CEBA) loans $7 billion of which is forgivable if the loan is paid back before December 31, 2022. The cost of the program is expected to rise to $13.7 billion by the time it ends Morneau noted that Canada’s debt structure is prudent and compares favourably with our G-7 peers. ________________________________________ Fine print in the comments! See more

POTUS and FLOTUS have tested positive for COVID, wow! Things won't be boring in this presidential election, that's for certain.

If ESG (environmental, social, and governance metrics) or SRI (socially responsible investing) are important to you, check this out!

For every workplace!

[EDITED POST: Image has been removed, as the details of Friday June 5th 4pm event have been corrected... thank you to those who engaged on the post to ensure accuracy of the information!] Boosting signal, without comment (as a non-Black-owned firm, we aim to AVOID performative allyship and rather amplify voices at this time).

Some highlights from this article: Global equity and bond markets rebounded strongly, taking heart in central bank and government stimulus programs. Sovereign bond yields stabilized; provincial and corporate bond credit spreads have begun to narrow, allowing investment-grade bonds to respond with strong gains. Oil prices plummeted as global demand hit a virtual wall with the shutdowns in global travel and industries. Governments began to unveil post-pandemic plans to emerge from shutdowns, offering a glimpse of ‘new normal’ realities.

Ask us which LOW-MEDIUM RISK mutual fund has added the following positions in the past 2 months: ASML Holding o The company gives the world's leading chipmakers the power to mass produce patterns on silicon, helping to make computer chips smaller, faster and greener o As we move in to the next generation of mass production, ASML is the only company equipped with this technology ... o Cannon and Nikon are the main competitors but do not have the same technology Home Depot o The largest home improvement retailer in the United States, supplying tools, construction products, and services o Insulated from e-commerce/Amazon-effect as a good deal of their product is prohibitive from a cost perspective to ship due to weight o The company continues to build a compelling online offering for smaller/lighter products o Brick and mortar stores provide value to customers as in-store employees offer expertise Costco o Retail-focused warehouse which offers a select assortment of high value merchandise o Recurring revenue via memberships (over 100M members worldwide) o The company does a good job at concentrating their buying power as they purchase fewer unique products but in greater quantity vs. Walmart, Target etc. o In-store display is cheaper to maintain (ie. items on a pallet) o Further insulated from e-commerce threat as majority of sales come from food and fuel which drives foot traffic o The company continues to develop online sales presence o Costco has a conservative balance sheet and is a company that has been on our tracking list for number of years o During that time the company’s valuation was the only holdup, but as it traded lower we initiated a position

Whether it's video chat, phone, or email, we remain here for you as steadfastly as ever! Our office is running each business day with 2 on-site, and 3 working from home on a partial daily rotation. We are honoured to work alongside our clients during trying times, as we know this is when you count on us more than ever. We miss seeing your beautiful faces in person, and we also greatly miss our in-house independent coffee shop, Pegster's (DO pop by Pegster's once they're able... to be back up and running again - you'll be glad you did, for the unparalleled friendly service and delicious freshly made goodies). But let's keep going, BC and Canada! We've got this. Keep cheering at 7pm. Keep social distancing. Keep supporting local business. Keep this curve flattened for ourselves, for our loved ones, so our health system can stay on top of it until there's effective treatment and/or a vaccine. Let's get really good at this "interim normal" until there's a full "new normal" in the future. We're in it for the long haul with you. In the sage words of Dr. Bonnie Henry, say it with us now: "Be kind, be calm, be safe" <3

Great big shoutout to each and every frontline/essential worker right now, especially NURSES during Nurse Week. You are ALL heroes in this pandemic. Thank you to every single person and department keeping our hospitals, health facilities, and pandemic management running.

Some highlights from this article: Global equity and bond markets rebounded strongly, taking heart in central bank and government stimulus programs. Sovereign bond yields stabilized; provincial and corporate bond credit spreads have begun to narrow, allowing investment-grade bonds to respond with strong gains. Oil prices plummeted as global demand hit a virtual wall with the shutdowns in global travel and industries. Governments began to unveil post-pandemic plans to emerge from shutdowns, offering a glimpse of ‘new normal’ realities.

BC Temporary Rental Supplement...

This morning, Ninepoint's Eric Nuttall appeared on BNN for an 8-minute interview discussing negative WTI pricing and what that means for energy stocks in the months ahead.

A guide to Canadian federal relief measures...

Don't apply unless you really need it...

Yessssss!!!! The inquiries about leverage loans are starting to roll in. We're with you, clients, we like buying low... even though we don't know the timing or depth of the 'bottom', we know it exists, and we want in before a recovery, no matter how long it takes.

If you were on the fence about life or critical illness insurance due to hating needles... now's your chance. Paramedical examinations are off until further notice, as it is not prudent to put health professionals in front of clients for non-essential testing... so insurers are rapidly relaxing their underwriting requirements until paramedicals can return to normal. Now's your chance for an application with a health questionnaire only, no blood or urinalysis.

Looking for opportunity? Ask us which fund currently holds: Nihon Kohden (6849:JP) A Japanese diversified medical device equipment manufacturer with a strong presence in Japan and the United States. ... Raffles Medical Group (RFMD:SP) A Singapore-based hospital owner and operator who has expanded its activities in China, in addition to its facilities in Singapore and South East Asia. Evotec (Evotec:GY) A biotechnology research company based in Germany, whose technologies include vaccine development applications. Tecan (TECN:SE) A Switzerland based medical equipment company who is a global leader in manufacturing diagnostic instruments.

From the Empire Life investment team: "Unlike the 2009 financial crisis... this is a global health crisis which gives governments around the world the ability to intervene quickly and with as much monetary and fiscal stimulus as needed. To date, actions by governments have been reassuring and recent weak economic data will only further motivate governments to act aggressively. The United States Federal Reserve cut short term rates to virtually zero and committed to buying at... least $700 billion worth of Treasuries and mortgage backed securities. In addition, the US government has approved a $1.3 trillion fiscal stimulus package with discussions of an additional $1 trillion. The European Central Bank approved a 750 billion monetary stimulus package and the Eurozone’s largest economy, Germany, has committed to a stimulus package of up to 550 billion for companies hit by COVID-19. These are big numbers and the list goes on. "Here in Canada the federal government has announced an $82 billion stimulus package. The Canadian government has also committed to purchase up to $50 billion worth of insured mortgage pools through Canada Mortgage and Housing Corporation to provide funding to Canadian banks and mortgage lenders; and OSFI lowered the domestic stability buffer which effectively allows the Canadian banks to inject $300 billion of additional lending into the economy. Finally, the Bank of Canada slashed interest rates on March 13th by 50 basis points to 0.75% and left the door open for additional cuts. "Once the spread of COVID-19 is contained and social distancing ends, we believe the unprecedented level of monetary and fiscal stimulus will be a major boost to global economic activity." This reflects the views of Empire Life as of the date published and is subject to change without notice. The information is for general information purposes only and is not to be construed as providing legal, tax, financial or professional advice.

Looking for a glimmer of hope for that eventual market bottom we're all itching to see (who knows when but it WILL be there)? Of course you are! Well, the Volatility Index (VIX) has hit levels higher than the 2008 financial crisis, which indicates that *extreme pessimism* is ALREADY priced into the market. Call us a glass-half full firm, but we know it and we're telling you too... hang in there... there IS an end to it and we'll only know it in hindsight, so don't try to time it. Holy smokes, who was invested during today's rally? :o

If you are triggering a capital loss (in a taxable account) during this market downturn, be sure you're able to use the allowable portion on your tax return! Don't allow it to be deemed a superficial loss, rendering it unusable for tax savings.

"Portfolios are designed for clients’ specific financial objectives. Unless these objectives have changed, it is riskier for them to make an emotional decision and completely change their strategy than it is to stick it out during uncertain times... The current market sell-off is broad based and is affecting securities of quality companies with solid fundamentals. Within our various strategies and pooled funds, we are seizing the opportunity to increase our positions in quality companies with a solid balance sheet, at discounted prices. We believe these companies will withstand the current economic challenge and be among the first to benefit from a market rebound." - Assumption Life (and they're in good company with all portfolio managers right now)

How to keep your head down and stay invested, EVEN IF 'this time is different'... "Every market drop feels different. There is always a narrative, and the narrative is often scarier than the drop itself. If we can understand the power of a compelling narrative to make us behave irrationally, we might be better equipped to make better decisions, and feel less anxious, when the stock market declines."