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FLS MARKET WATCH JULY 2021

Friday, August 20, 2021

FLS MARKET WATCH – JULY 2021 Global financial markets hit all-time highs once more in July, marking the sixth monthly consecutive gain. However, the stock rally slowed last week on fears that the rising Delta variant of COVID-19 could become a potential headwind for global economic growth. In addition, many companies coming into Q3 2021 earnings seasons with lofty valuation levels and China’s crackdown on internet and technology businesses are making investors nervous. Canada The S&P/TSX Total Return Index was up 0.61% in July as…

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FLS MARKET WATCH JUNE 2021

Friday, July 9, 2021

FLS MARKET WATCH – June 2021 Global financial markets again reached record all-time highs in June due to encouraging consumer confidence data, more US spending stimulus plans, and higher economic growth hopes. Still, concerns about rising inflation and future tax increases persisted. In addition, investors have been pleased by the success achieved in the fight against the pandemic, as daily status statistics have continued to decline. However, the situation in other parts of the world, notably in Asia and the Pacific, remained more worrisome as…

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FLS Market Watch May 2021

Wednesday, June 9, 2021

Global financial markets reached record all-time highs in May, following reports that for the fiscal year 2022, President Joe Biden would pursue a spending plan of $6 trillion for federal expenditures. May turned out to be a solid month for equity markets. Still, politicians are confronted with inflation pressure as the underlying recovery continues to struggle for momentum. Moreover, remarks by many Fed representatives show a changed central bank tone. A month ago, Fed President Jerome Powell stated that it was “not yet” time to…

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FLS Market Watch April 2021

Thursday, May 13, 2021

FLS MARKET WATCH – APRIL 2021 Global financial markets reached record all-time highs in April due to strong corporate earnings releases, additional U.S. spending stimulus plans, and the Federal Reserve’s renewed commitment to stay strong in the face of mounting inflationary pressures. However, the last week ended mixed due to inflation and potential tax hike concerns. The vaccination campaign progress in the U.S. is helping contain the fourth covid-19 wave. However, the pandemic situation in India is very concerning as there is a shortage of…

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FLS Market Watch March 2021

Monday, April 12, 2021

Global stock markets closed near their all-time highs in March but ended mixed in the last week as investors are still worried about the rising rates. Regarding the pandemic, many European countries have imposed new or extended restrictions to curb variants. In Asia, Japan said there would be no foreign spectators at this summer’s Olympics. The Suez Canal is reopening after a massive container ship blocked the canal, which raised global supply chain concerns. CanadaThe S&P/TSX Total Return Index was up 3.87% in March following…

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FLS Market Watch February 2021

Thursday, March 11, 2021

FEBRUARY 2021 Global equity markets reached new all-time highs in February but ended on a sour note in the last week due to rising bond yields.  This prompted a sharp sell-off in equities on overvaluation fears.  Significant government spending and a dovish monetary policy buoyed the stock market last year.  However, these measures are now fueling inflation.  Low yields drove investors into equities, pushing valuations to their highest levels in years.  Now the yields are soaring, equities are looking less attractive.  The specter of inflation…

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2020 Update: What’s ahead in 2021

Tuesday, January 12, 2021

As I look back and provide a post-mortem review of 2020, Covid-19 really shaped much of the economy.  In March, we did see one of the quickest market declines in history, with the S&P 500 taking 117 trading days to drop 34% and then recover (Visual Capitalist).  Central Banks around the world began suppling fiscal stimulus to thwart economic slowdown, with the US increasing its balance sheet by 3.2 trillion dollars (Factset, Federal Reserve).  On a year-to-date basis, the broad S&P 500 market increased about…

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Managed Portfolios – Quarterly Rebalancing Commentary June 2020

Thursday, July 16, 2020

The S&P/TSX Total Return Index ended the month of June up 2.46%, marking its best quarter in more than a decade (Toronto Star). Investors were focused on the speed of economic recovery from the Covid-19 crisis rather than the lagging economic data showing record temporary declines. Market sentiment also continued to thrive for a third consecutive month in June, as the new COVID-19 infections in Canada were not accompanied by as many hospitalizations and deaths. In terms of monetary policy, the Bank of Canada held…

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Do March and April Showers bring May Flowers?

Monday, May 25, 2020

Over the last 20 years, I have lived through many market events, and each one has been unique and has felt unsettling, with the last major shockwave being the 2008 Great Financial Crisis.  The current Covid19 pandemic is also very unique in that the financial markets were shocked and reacted initially to a health event rather than to an economic event. My Concerns It seems that Economics 101 has been thrown out the window. Normal economies function on basic laws of supply and demand, that…

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Managed Portfolio Quarterly

Friday, April 10, 2020

Q1 2020 Commentary As I contemplate what to communicate today, I am struck by the sheer severity and breadth of how much the world has changed in such a short time.  In a period of a few months, the world has succumbed to Covid-19, and seemingly every facet of life has been impacted.  To date, more than 850k have contracted the disease and the WHO estimates a 3.4% mortality rate as of Mar 3 (Worldometer, 2020, para2). Although China has reported encouraging data that reflects…

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