Recent Articles
Weekly Insights: Investor Lessons From 2020
It is difficult to characterize 2020 other than to use the oft-repeated termâunprecedentedâ. The past year does not fit into any historical âboxâ. The economy has been recovering and adjusting, with a lot of help from monetary and fiscal stimulus. But many millions are still out of work and many industries are struggling to get through to the other side.
December 2020 Investor Strategy: 2021 Outlook â To A Less Eventful Year
At the start of the new decade, markets were fraught with uncertainty: global economic growth looked poised to slow, forecast
corporate earnings expectations were mixed, valuations were at all-time highs, and central bank accommodation had pushed credit
spreads to cycle lows. Add the uncertainty of an upcoming U.S. presidential election, correction risk was elevated with the big
question being what would trigger it. As it turned out, investors wouldnât have to wait long to find out: the COVID-19 pandemic
served as the tail risk that changed everything!
Weekly Insights: Golden Pause
Investing in gold, either gold producers or bullion, has never been easy. Of course we are not counting the âgold bugsâ who believe anytime is a good time to buy gold. Gold investing isnât easy because it changes so much from one period to the next. There are periods that gold is a hedge against inflation, other times a hedge against turmoil, sometimes it takes on a more speculative
ethos, sometimes a hedge against the U.S. dollar or fiat currency devaluation. Perhaps the yellow metal is more chameleon than an indestructible element.
Weekly Insights: Who Will Pick Up The Tab?
COVID-19 has caused a global recession, reducing government receipts while triggering a policy response that is unprecedented in size and scope. There is no question this has blown a huge hole through most countriesâ budget and finances. According to the IMF, the fiscal policy response to COVID-19 has been $5.9 trillion so far (as of October 2020). There has also been $5.8 trillion of liquidity support.
Weekly Insights, The Great Rotation
This year has seen an historic divergence between the economy and the stock market, and also within equity markets themselves. There is no question that the COVID-19 pandemic and the response in fighting it has unfairly impacted many industries while
many others remain unscathed or have even benefitted. This divergence has manifested in the equity markets as well, accelerating some preexisting trends and abruptly changing others. This can be seen in the contrasting performance this year of Growth versus Value stocks. To be frank, Growth has outperformed Value by more so far this year than any year in the past (indices were created in the mid 1970s).
Weekly Insights, 2020 Election: Sweet Gridlock?
At this point it would appear, based on the odds and the views of political âexpertsâ, that Joe Biden will be the winner. The Senate will remain under Republican control and the House will be under Democratic control, albeit less so than before. So here are our thoughts
on the market/economic implications with the HUGE caveat that the outcomes are not final and there are likely a few curve balls ahead.
November 2020 Investor Strategy: Pandemic, Polls, & Positioning
The relationship between politics and finance is closely intertwined. Every four years, we have a major convergence
when Americans head to the polls and investors try to figure out what it means for their portfolios. Canadians have a
vested interest as Canadaâs economy and a large portion of diversified portfolioâs are directly exposed to the U.S.
Market Monthly: October’s Monthly Market Returns
Tune in monthly to get monthly market returns brought to you by the Echelon Wealth Partners’ Insight Team. Simply download the PDF file below and enjoy great content.