Peter Guay

In this 30-minute video presentation, Peter Guay takes an in-depth look at the first half of 2020 with an emphasis on the effect of the COVID-19 pandemic on stock markets.

The first half of 2020 has certainly kept us on our toes. Stock markets have experienced the fastest decline and rebound of this magnitude in history. Even the most seasoned investors have difficulty stomaching that much volatility.

Dividend investing has long been a favourite strategy for Canadian investors who are attracted by the prospect of earning a large stream of income, especially in an era of declining interest rates.
However, the poor performance of dividend stocks during the pandemic-induced market decline and subsequent recovery highlights some of the risks associated with this strategy.

You’re probably familiar with the concerns that contributed to the drop in REIT prices as the economy locked down in March. One important worry has been the trend to work from home. The other has been the difficulties of bricks-and-mortar retail.

Do you have to give up returns when you opt for responsible investments? That’s an important question for many people who are considering whether to switch to a portfolio more aligned with their personal values.

A recent article in the Globe and Mail forcefully made the case that the huge growth of passive investing is distorting markets and creating unintended risks for investors.

Since hitting lows in mid-March, most stock markets have regained about half of what they lost from their peak in mid-February. That’s led many people to wonder why the markets have come back so far, so fast, given the severity of the economic fallout from the COVID-19 pandemic.

A client recently contacted me about the possibility of a surge in inflation due to massive government spending in response to the COVID-19 pandemic.

Over the past weeks, we’ve received a number of calls and messages from clients about the sudden decline in the stock market caused by the Covid-19 pandemic.

The sudden ratcheting up of the coronavirus crisis has made for an anxious couple of weeks on every front—health, family, work and finances—and there’s more uncertainty to come.