RowanOak Blog

I was not initially schooled in the world of economics. Or finance. Or market analysis. For the sake of my clients and partners, I’ll provide comfort by assuring them, indeed I have acquired that knowledge and training during the past 25 years working in the world of personal wealth management.

The Dynamic Real Estate & Infrastructure Fund continues to recover and has been on a nice little run, especially compared to how the rest of North American markets have recently stalled out...

Every time I think this bizarre year can't get any stranger, it gets even more surreal and at a speed that is hard to keep up with. The market is understandably in a state of unease as we brace for the US election. But with only a few weeks left before the election, the market is laser focused on fiscal policy right now, and there appears to be some positive momentum on that front.

I hope you and your family are continuing to stay well. I wanted to share some updates on current key economic, market and pandemic-related developments.   The markets’ rebound from the depths of the mid-March pandemic-driven drawdown reflects optimism that businesses will continue to recover and that as a global society we will find ways to contain the spread of COVID-19. At the same time, government and fiscal support measures for households and businesses continue to provide a strong tailwind for many parts of the market, particularly equity and corporate bond markets. Nevertheless, economic activity remains below pre-pandemic levels and significant adjustments are still needed for many businesses to recover, presenting significant risks to the outlook.

I trust that all is well with you and you have been enjoying the nice weather of late. Below you will find a summary of this week’s market developments and related thoughts.

Global capital markets continue to brush aside a number of conflicting developments as they stage a strong recovery from the March lows. While many investors may claim this recent rise is remarkable, it is for exactly this reason that my advice to you has been to stick with the long-term plan we built. Months ago, had we imagined a global pandemic, a gradual re-opening of economies after an extended shutdown and protests throughout America all taking place as we head into June, you would have been hard pressed to find someone predicting that markets would continue to move higher right through it. Yet here we are.

In previous letters, we have discussed the importance of sticking to your long-term plan, despite current market conditions. The incredible recovery we have seen since the recent market lows have included some very large gains on certain days, which have caught investors by surprise. By sticking to our plan, we look to avoid the risk of missing out on such days. Conversely, the chart below demonstrates what can happen to those who do try to time market moves.

The markets have continued to rebound in the face of a great deal of uncertainty related to both the progress of the pandemic and the prospects for an economic recovery, further demonstrating the risk of attempting to time your investments based on short-term reactions.

With plans for a gradual lifting of pandemic restrictions now in the frame, I hope that you and your family are keeping well and finding ways to adjust to the changing circumstances. Below you will find a summary of what took place in the markets this past week, as well as some related thoughts.

North American stock markets have rebounded smartly from their recent lows reached in late March, despite the increasingly poor economic data. This shows why it is important to keep in mind that in the short term, no one knows which way markets will move.

I hope this note finds you and your family well. As part of my commitment to keeping you informed in the current environment, this note is something that I thought you should see.  Very scary what criminals will do to prey on the public.