There is an interesting article from Morgan Stanley about why this recession is different from previous severe periods. It is somewhat technical but a good read.
On another note, the BCE stock price has crashed, further hurting Canadian Investors. I remind you that single company risk is never adequately remunerated by stock markets. PWL clients do not own BCE shares.
Please call if you have any questions.
October 2008 stock returns will go down in history as one of the most difficult months for equity market returns in the last century. While returns were significantly negative, they were not without precedent. The table below illustrates what you have been hearing in the media:
It is important to recall that the PWL broadly diversified portfolios include a further 10-12 asset classes, some of which were less affected:
Recently, the turmoil in the interbank lending market has started to settle down and banks have started lending to each other again. This improvement is largely due to governments guaranteeing these loans, over and above their generous injections of capital to shore up many major international banks. In spite of this, market nervousness and volatility persist due to major declines in the currencies of several emerging countries. This is to be expected.
Please consult October's Market Statistics. Thank you and best regards.
Market Statistics (PDF)
Statistiques de marché (PDF)
The latest statistics are regularly available in the Broadcast Centre, Market Statistics and you'll find my comments archived in my Market Statistics & Commentary page.