Covid 19 Update 4
Here is the latest update and some charts and graphs from various sources. Markets were positive for St Paddy's Day! **Time to get back in?** If you were to purchase the Exchange Traded Fund (ETF) I sell that buys the 6 Canadian banks you would be locking in an annual dividend yield of over 6%. That's an annual return of 6% every year before any actual capital growth in the banks stocks. Try getting that on a GIC. RBC recently reported 1st quarter profit of $1.5 Billion (Nov to Jan) and the stock has dropped throughout the crisis yet nothing about it's business has changed. If you have money on the sidelines in any form including GIC's this is an opportunity to take advantage of a solid long-term investment. Contact me for more details.
Some Optimists (Bloomberg) A gauge of investor fear is jumping, and analysts at HSBC are predicting trading suspensions and write-downs as a result of the illness. But not everyone’s downbeat: Credit Suisse told its wealthy clients that the stock market crash has reached an extent where long-term investors should start adding to holdings, without getting overly exposed, while Morgan Stanley reckons markets could be bottoming. For now, European and U.S. equity futures are paring Monday’s slump amid volatile trading in Asia.
Some historical corrections:
And from the always calm and logical John Authors, Bloomberg: For stock market investors, the bad news is that the news has been so bad of late that a big decline in corporate earnings is inevitable. That will bring a bear market with it. The good news is that the impact will be temporary. Earnings should be increasing by the end of the year, as should the stock market.