Personal Wealth

Often called a ‘once in one hundred years event’, the COVID-19 pandemic is having a profound impact on the economy. Today’s guest is Craig Alexander, Deloitte’s Chief Economist, who brings his 29 years of experience analyzing the economy to answer our questions about the marketplace.

When the stock market was falling in February and March, it would have been natural to worry about how bad it was going to get and whether you should cut your losses. It’s at times like those that emotions can cloud your judgment and lead to rash decisions.

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.

According to legend, Ulysses, the hero of Homer’s epic tale, the Odyssey, encounters the Sirens on his return from the Trojan war. The Sirens lured sailors to their doom through their enchanting music and singing.

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.

The first half of 2020 was one of the most volatile on record. Bear equity markets usually last over a year. The bear market of 2020 — if it is confirmed to be over — will have lasted 39 days and was followed by a rapid recovery.

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.

“That market correction was too much for me. It was unexpected, it was quick, and it caused me worry. I know the market values have partially recovered from their lows, but what can I do now to protect myself? What if the market declines again?”

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.

Even though we learn that money is merely a means of exchange, a store of value, or a unit of account, it’s so much more than this. Money captures so much of what we grapple with like hope, joy, fear, regret, and envy, yet it’s widely surveyed as being the least spoken-about issue when compared to religion, mortality, and marriage. Dr. Brian Portnoy, the author of The Geometry of Wealth, joins us today to share his view on wealth.