Market watch bulletin - February 28, 2022: Given the current geopolitical situation here are a few thoughts from our investment team.
The situation is changing very rapidly in Ukraine, so we won't try and update you on the moment-to-moment situation.
Let’s start by extending our sincerest best wishes to the people of Ukraine. We can't imagine what it feels like to wake up to a terrifying situation that must have felt inconceivable a couple of months ago and realize that your life and that of your family are in danger. All our thoughts and prayers are with them.
From the desk of Ashley Misquitta: In this recent article, Ashley Misquitta reviews the key market events impacting 2021 and beyond.
Transition was clearly a dominant theme over the past year. Transitioning from the unprecedented COVID-19 lockdowns of 2020 and early 2021, global economies began to ease restrictions as vaccines were rolled out in the spring, driving greater economic activity across many sectors. And we saw many other important transitions occur as well.
Key takeaways: Tactically increased bonds, decreased international equities*
We are taking a slightly more defensive posture by trimming international equities and adding to bonds. This is indeed a tactical, but measured decision. It is a move in a more conservative direction with an eye towards taking potential risk exposures incrementally lower.
“You build on failure. Use it as a stepping stone and close the door on the past. Don’t try to forget the mistakes, but don’t dwell on it.” Johnny Cash
Provide a tax efficient income stream for your surviving spouse
Like many Canadian business owners, you may be holding money in your corporate account in GICs and other short-term investments to avoid market downside risk. Consider segregated funds as an option in your corporate account to maximize investment returns and get efficient tax and estate planning.
Harsh Narsinghani, Senior Investment Analyst, discusses the geopolitical impacts on the semiconductor supply chain and its potential beneficiaries.
I remember being a little taken back when Dr. Tim Foggin, Teladoc’s Medical Director for Canada, first mentioned that only about one in 10 doctor consultations require physical touch to be effective:
“Many patients and family physicians have been surprised to learn in recent months what we have known for several years: that many—and some would say most—consultations benefit from physician skills and involve patient needs that do not need immediate physical touch. Family doctors in Canada are telling me that around 10% of consults, sometimes less, need to be in person. The landscape has changed dramatically due to this new understanding.”