Time for a brief update
It’s only been about 20 days since the start of market reaction to the Coronavirus. It’s been 11 days since my preliminary comments. Things have been changing fast and furious.
Over the last 11 days, I’ve been able to speak to most of my clients, and we are all pretty much on the same page. To start with, as an investment advisor, I’ve always erred on the side of caution, and most of my clients have an asset allocation that is a little more conservative than what others may suggest. This has provided some downside protection in the recent volatility. Furthermore, most of my clients have a fairly long term investment time horizon, and therefore the recent market volatility is not getting them as concerned.
This being said, one of my clients contacted me last night with thoughts of capitulation and ready to sell. This is normal given all the news and uncertainty of recent days. What I replied is as follows:
Personally, I’m optimistic, and I believe realistic. In my view this is a disruptive situation, but one that is temporary. There are some sectors that will be hit hard, and some that will benefit. I also believe that governments will roll out extraordinary measures to help those who are most effected. However, until you see it, it’s not there.
Whichever way this evolves, people will still need to buy homes, they will still need to eat, cloth themselves, entertain themselves, travel, and basically satisfy their needs and wants in one way or another.
The recent market correction has been super fast and deep in the 20% range. It is possible, and certainly feasible that the market will go down further. This being said, I think we are closer to the bottom, and the rebound will happen very quickly.
What I am recommending to my clients is that if nothing has changed with their time horizon for their investments, to hold on. Most of my clients portfolios contain significant fixed income components, and many of the portfolio managers are starting to take advantage of the recent declines to buy equities at significantly reduced prices. For investors that have additional funds to invest, it is now time to start the discussion to formulate a strategy about how to start making additional investments.
The following is an article on investor emotions. Please scroll down to the bottom of the page: Dynamic: Cycle Of Market Emotions
The following is an article on investing. Dynamic-Investing essentials
The following is a market update by Fidelity investments Fidelity-Coronavirus _ Market volatility and the business cycle
The following is a well written article from CBC on investing: Is the coronavirus ravaging your investment portfolio? Here’s what you need to know
A few words of wisdom from Warren Buffett Warren Buffett’s 4 Rules for Investing in a Bear Market
There are so many other articles I have but this is enough for now. Just to let you know, from the time I started writing this post, I came across two pieces of interesting news:
Canadian scientists make COVID-19 research breakthrough, isolating virus
Warren Buffett: People aren’t driving as much since the coronavirus outbreak This article is just one example of a sector that is benefitting from the recent situation. Car insurance claims have been down recently due to people driving less. This can only help car insurance companies profitability, and potentially lead to lower insurance premiums for consumers. As you know consumers will then spend the savings on other items.
In closing, should you have any concerns about your investments, please feel free to call me anytime.
Regards,
Warren Ross
Mortgage Broker/Mortgage Intelligence
Financial Security Advisor/ Warren Ross Financial Services Inc.
Investment Representative/Quadrus Investment Services
T: 514-731-2333
C: 514-994-9377
F: 866-513-4326
E: warren@warrenross.com
W: www.warrenross.com
W: http://mortgageintelligence.ca/brokers/Warren-Ross
Time for a few words in light of the the recent market volatility related to coronavirus.
We all know that investing in the stock market means dealing with volatility. Fortunately in the last 12 years since the financial crisis, the direction has been mostly up. This being said, it’s been a while since we’ve had to deal with adverse circumstances, and it is here we find ourselves today. The purpose of this post is to address the current situation and to put it into context.
The recent news about the coronavirus has made people around the world concerned about the implications for the global economy. If there is one thing that the stock market doesn’t like, its uncertainty. In the past week, stock markets around the world have fallen in the 12% range, the most since the financial crisis in 2008.
Going forward, if you do some research on the matter, you will find some prognosticators predicting the worst, and others, like the head of the world health organization, encouraging global investors to calm down and examine the evidence, and to put things into context.
The following are some additional insights from some of the investment companies we deal with:
As a financial advisor, I don’t have the expertise to advise my clients on the risks of the proliferation of this illness, but what I can do is advise my clients on how to manage their investments in a volatile market.
To begin, my advice is to take a moment to keep in mind some very old adages about investing:
In summary, no one likes when their investments go down in value even if its temporary. Going forward, it’s possible the markets may go down further. They may rebound sooner than we think as well. Whatever the case may be, I believe my clients are diversified sufficiently to whether the storm, and to achieve their long term objectives.
If you have questions about your investments, or their suitability, or if you feel that your objectives or risk tolerance has changed, feel free to contact me anytime.
Warren Ross
Mortgage Broker/Mortgage Intelligence
Financial Security Advisor/ Warren Ross Financial Services Inc.
Investment Representative/Quadrus Investment Services
T: 514-731-2333
C: 514-994-9377
F: 866-513-4326
E: warren@warrenross.com
W: www.warrenross.com
W: http://mortgageintelligence.ca/brokers/Warren-Ross
So you got your mortgage, now you are wondering if you should purchase mortgage life insurance from your bank, or personally owned insurance?
As an independent life insurance agent, I always advise my clients to get their own personally owned insurance 100% of the time. This is for many reasons. The only time I ever recommend to my clients to take mortgage life insurance from a bank, is if they don’t have any insurance, and they want immediate coverage before we apply for anything else.
The following is an infographic that explains some of the advantages of personally owned insurance over bank mortgage life insurance products. Please call me to discuss your particular situation. 514-731-2333
Without proper planning, estate settlement can become a nightmare for your beneficiaries. The following information will help you get started. Call me to discuss.
In simple terms, estate planning is the process of planning how your assets will be distributed upon your death.
There are three main reasons for estate planning:
Estate Planning Guide for Business
Common Wealth Transfer Mistakes
What Happens to RRSP’s & RRIF’s on Death?
Keeping the family cottage in the family
Call me to discuss your estate planning objectives.
The commentary in this publication is for general information only and should not be considered legal, tax, or other professional advice to any party. Individuals should seek the advice of professionals to ensure that any action taken with respect to this information is appropriate to their specific situation.
For many Canadians, mortgage payments are their single biggest expense. Yet most don’t comparison shop to ensure they’re getting the best mortgage rate and terms available, which can cost tens of thousands of dollars over their mortgage years. Don’t make the same mistake! Here are 10 reasons why you need a mortgage broker working for you:
Buying a home? Mortgage coming due? Refinancing? Call me anytime to discuss your home financing options.
The commentary in this publication is for general information only and should not be considered legal, tax, or other professional advice to any party. Individuals should seek the advice of professionals to ensure that any action taken with respect to this information is appropriate to their specific situation.
New mortgage rules start January 1, 2018, which may unfortunately affect your ability to use your home equity to consolidate your high-interest debt into a new or existing mortgage. This is a great option if you are in need of extra cash flow, want to pay down your debt faster, and save potentially thousands of dollars in interest. Act now if you want to realize these benefits:
Consider the following example – existing mortgage, car loan and credit cards total $225,000. Roll all that debt into a new $233,000 mortgage (including a fee to break the existing mortgage) and just look at the payoff:
If you put $500 of your monthly savings back into your mortgage payment, you’ll reduce your amortization from 25 years to 15. Or you could invest in RRSPs or RESPs and reap some tax benefits. The choice is yours.
To find out how you can lower your debt, boost your monthly cashflow and be mortgage-free quicker, before the new rules come into effect, contact me today!
The commentary in this publication is for general information only and should not be considered legal, tax, or other professional advice to any party. Individuals should seek the advice of professionals to ensure that any action taken with respect to this information is appropriate to their specific situation.
The Bank of Canada announced today that it is holding the overnight rate steady, and indicated that they will be cautious in raising rates going forward.
The Bank noted that consumer spending, business investment, and infrastructure spending are contributing to growth, but that export growth has slipped and the global outlook faces continued uncertainty due to “geopolitical developments and trade policies.” The Bank has therefore deemed that “the current stance of monetary policy remains appropriate.” Good news for homeowners with variable-rate mortgages and lines of credit. The next rate-setting day is January 17, 2018.
IMPORTANT – New Mortgage Rules Effective January 1, 2018. Purchase before year end if you have 20% downpayment, otherwise you may have to buy 20% less home! If you need to pay off large amounts of credit card debt, are thinking of a large renovation, or want to buy an investment property, you should also act before year end. These new mortgage rules will reduce your purchasing power and affect your ability to access your home equity. Get in touch ASAP to understand the changes and review your options!
If you have questions about your home financing options, call me anytime. 514-731-2333
The commentary in this publication is for general information only and should not be considered legal, tax, or other professional advice to any party. Individuals should seek the advice of professionals to ensure that any action taken with respect to this information is appropriate to their specific situation.