Feeling whiplashed? Missed out on the market rebound because you liquidated your investments and stayed in cash on the sidelines? You are not alone. The speed at which the bottom fell out of the market in early March was unprecedented just as the sharp recovery at the end of March and into the second quarter of this year. The rally has been particularly strong in the tech sector and is only now beginning to lose steam. As investors, we are accustomed to staying the course, looking to the longer term and holding on until the dust settles so we can calmly consider our next move.
Has the “dust” settled yet? Maybe, for the time being.
Macro trends in geopolitics, Central Bank direct intervention in the capital markets and the economy, and the emotional highs and lows driven by the pharmaceutical industry collaborating intensely to find a cure for the COVID-19 virus will continue to whipsaw the market for some time to come. Staying focused on your investment goals and adding to your investments during uncertain times has been an effective investment strategy over time particularly from a dollar cost averaging perspective. Manulife Investment Management recently published its outlook for the second half of 2020 highlighting Frances Donald’s work on the next 3 stages for the global economy: 1) the “Rapid Rebound”; 2) the “Stall-out” and; 3) the “New Normal” as well as providing insight into what’s behind these macro trends.
We invite you to visit the Manulife Investment Management Institutional site to learn more about what we are considering as we head into the second half of 2020: https://www.manulifeim.com/institutional/ca/en/global-intelligence. Please contact us if you would like a second opinion on your existing investment portfolio or have any questions.
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