You’re Back!

Good day,

The S&P500 (the largest equity market in the world) took 14 weeks to fall in late 2018 and it fully recovered over the next 17 weeks and continued to climb thereafter reaching record territory on Tuesday of this week. Sigh of relief?  Fine, go ahead, but in order to continue to improve in your investing career, make a mental note of this experience so you not only manage emotions better the next time around but better yet, take advantage of the opportunities the panic of others can create. 

What’s ahead?  Should it really matter if you’re a long-term equity investor? If you’ve got capital to deploy maybe you’re hoping for bad news so the market could sell off 10-15%. For those whom it may be relevant to, here’s a gist of where we’re at.

  • Q1 earnings reports came in strong for many US companies but not for all.
  • US GDP expanded at a 3.2% annualized rate in the first quarter, which was better than most had forecasted.
  • China’s economy seems to be improving and its stock market has seen strong gains this last quarter.
  • Ditto for most European exchanges.
  • Canada’s economic outlook isn’t stellar but remember that stocks have historically performed reasonably well even during periods of low GDP growth.  In fact, the TSX has also reached record territory this week and given that it has unusually lagged the S&P500 over the past few years, if not in the short-term, at the very least we should see strong returns over the next few years.

Few of our firm’s clients have 100% equity exposure and rightly so.  While long-term, equity returns generally outpace many other asset classes, diversification via private securities remains a focus for us.

Enjoy your weekend.


Daniel Popescu CFP, CIM, FMA, FCSI

President & CEO


“I have prepared this commentary to give you my thoughts on various investment alternatives and considerations which may be relevant to your portfolio. This commentary reflects my opinions alone and may not reflect the views of Harbourfront Wealth Management. In expressing these opinions, I bring my best judgment and professional experience from the perspective of someone who surveys a broad range of investments. Therefore, this report should be viewed as a reflection of my informed opinions rather than analyses produced by Harbourfront Wealth Management Inc.”

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