Self-Isolation or Family Time: What's the Difference - What's On Your Mind - Fifth Edition April 2020

It has been over a month since we have been told to social distance and just stay home.  So how are you dealing which with what’s been labelled as self-isolation? Are you feeling anxious and overwhelmed? Or have you been using this time to spend more time with the immediate family and maybe using FaceTime or other methods of video conferencing to catch up with family members and friends?

Did you know that having the right mindset and attitude can make a difference on how well you not only deal with self-isolation but how well you will fair when we go back to the new normal?

I am talking about spending time with family and friends whether in person or by video conferencing and sharing some experiences that you may not have had time for in the past. There have been families that have been using the time playing family games, preparing healthy home cooked meals, having meaningful conversations and even sometimes the pleasure of just going for a walk. When all is said and done there will be a lot of families that will be brought closer together and with a new appreciation for each other.

If you have the mindset you have been locked down in your own home and it makes you anxious or nervous, this could lead to mental or physical health issues. Think about whether you have been eating more, exercising less, and/or not getting enough sleep. You have to take 100% responsibility for your life. Using this time in self-isolation may be just what was needed to slowdown and reset your life. Trying meditations may help you relax and see this as an opportunity.

I know that financially this could set a lot of people behind in their retirement plans but nothing is more important than a person’s physical and mental health. Since this is out of our control, the things that we can control are the things we should control. So what can you do that would have a more positive impact and a feeling of well-being rather than looking at this time as a negative in your life? To having a good mindset.

Linda J. Levesque, CFP^®, FMA, FCSI®

Sr. Investment Advisor

Director, Private Client Group
HollisWealth®, a division of Industrial Alliance Securities Inc.

Levesque Wealth Planning is a personal trade name of Linda J. Levesque
Insurance Advisor

Hollis Insurance

One Corporate Plaza, 2075 Kennedy Road, 5^th Floor, Toronto, ON M1T 3V3
Tel: 416-412-8018 / 1-800-322-4030
Fax: 416-332-6772
linda@levesquewealthplanning.com                                                         

 

  Daniel Fearon, MBA, CFA, CPA(CA)

Sr. Investment Advisor

Director, Private Client Group
HollisWealth®, a division of Industrial Alliance Securities Inc.

Levesque Wealth Planning is a personal trade name of Linda J. Levesque

One Corporate Plaza, 2075 Kennedy Road, 5^th Floor, Toronto, ON M1T 3V3
Tel: 416-412-8018 / 1-800-322-4030
Fax: 416-332-6772
daniel@levesquewealthplanning.com                                                                                          

‘Saving Today for a Richer Tomorrow’®

WANT TO USE THIS ARTICLE IN YOUR WEB SITE?

You can, as long as you include this complete statement with it: Linda J. Levesque and Daniel Fearon, are Senior Investment Advisors and Directors, Private Client Group of HollisWealth®   Linda J. Levesque is an author of The 5 Minute Wealth Plan, Saving Today for a Richer Tomorrow®, in The Road to Success with Jack Canfield and in The Authorities, Powerful Wisdom from Leaders in the Field.  If you're ready to jump-start your life, have more fun and joy in all that you do, get a FREE consultation from Linda J. Levesque and Daniel Fearon. 

This information has been prepared by Linda J. Levesque & Daniel Fearon who are Investment Advisors for HollisWealth® and does not necessarily reflect the opinion of HollisWealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisors can open accounts only in the provinces in which they are registered. HollisWealth® is a division of Industrial Alliance Securities Inc., a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

Insurance products provided through Hollis Insurance.

Global Pandemic vs. Global Economy: What Really is an Essential Service? - What's On Your Mind - Fourth Edition April 2020

As we spiral deeper into this pandemic crisis we have to wonder out loud at what point will the pain caused by shutdowns and social distancing outweigh the suffering and death that will be caused by the disease.  This is not to make light of the disease or anyone that has suffered or perished from it.  We’ve been wondering this from the start but gladly went along with our government’s recommendation.  We shut down our offices and we’re working from home well before the government mandated it. 

But as we go further down this rabbit hole many issues are becoming more apparent.  The first that springs to mind is that a lot of decisions were made on very limited and insufficient data.  Collectively we are still not sure what the fatality rate of COVID-19 is.  Canada is even further behind this curve as our testing is lagging many of our counterparts.  Countries with larger testing sample sizes are showing fatality rates that are fractions of ours and Italy’s.  The media frenzy of gurney beds in Italy and China have caused a certain level of hysteria and fear which the media seems to be feeding on.  Apparently our hospitals are still waiting for this surge.  In our opinion the media seems to be rooting for the disease and the despair that will follow it.  Perhaps a responsibility check is warranted.

Another issue that springs to mind is that health care capacity needs to grow in lock step with population growth (organic or immigration based).  Or to that end an updated immigration policy is constructed.  Perhaps with adequate capacity mass lock downs could have been avoided.  

The most contentious issue is that of lives and specifically lives saved.  We (Canada) are grasping at straws here.  Similar to seat belts, we will never know how many lives were saved by the actions we took.  But governments globally have made the same decision that the immediate pain of death from the Coronavirus outweighs the pain caused by the death and social unrest that might follow in an extended recession.  A prolonged recession will uproot families, cause increased rates of heart disease, cancer, suicide, divorce, hunger, malnutrition, substance abuse and so on (and on).   We can’t flatten that curve when it comes.

For us it is also apparent that at some point we are all essential workers.  The government can’t continue to pay us to stay home indefinitely while every industry suffers and declines.  Eventually the government will run out of money and support.  Every last tax dollar was already accounted for prior to this event.  Government workers aren’t the only ones that need to work.  They are dependent on us entirely for their existence.

Some very difficult policy decisions need to made.  Lives now or lives later.  It’s really that simple.  Real courage and leadership will be required and quite frankly I'm not sure we have it here.  We are not eradicating COVID-19 on this go around.  Which means it will reappear in recurring waves.  What then?  Epidemiologists are not economists and vice versa.  But to listen to one (as we've done) over the other doesn’t sound wise or balanced.  At some point every single worker in Canada (and elsewhere) is essential as is every life.

Linda J. Levesque, CFP^®, FMA, FCSI®

Sr. Investment Advisor

Director, Private Client Group
HollisWealth®, a division of Industrial Alliance Securities Inc.

Levesque Wealth Planning is a personal trade name of Linda J. Levesque
Insurance Advisor

Hollis Insurance

One Corporate Plaza, 2075 Kennedy Road, 5^th Floor, Toronto, ON M1T 3V3
Tel: 416-412-8018 / 1-800-322-4030
Fax: 416-332-6772
linda@levesquewealthplanning.com                                                         

 

  Daniel Fearon, MBA, CFA, CPA(CA)

Sr. Investment Advisor

Director, Private Client Group
HollisWealth®, a division of Industrial Alliance Securities Inc.

Levesque Wealth Planning is a personal trade name of Linda J. Levesque

One Corporate Plaza, 2075 Kennedy Road, 5^th Floor, Toronto, ON M1T 3V3
Tel: 416-412-8018 / 1-800-322-4030
Fax: 416-332-6772
daniel@levesquewealthplanning.com                                                                                          

‘Saving Today for a Richer Tomorrow’®

WANT TO USE THIS ARTICLE IN YOUR WEB SITE?

You can, as long as you include this complete statement with it: Linda J. Levesque and Daniel Fearon, are Senior Investment Advisors and Directors, Private Client Group of HollisWealth®   Linda J. Levesque is an author of The 5 Minute Wealth Plan, Saving Today for a Richer Tomorrow®, in The Road to Success with Jack Canfield and in The Authorities, Powerful Wisdom from Leaders in the Field.  If you're ready to jump-start your life, have more fun and joy in all that you do, get a FREE consultation from Linda J. Levesque and Daniel Fearon. 

This information has been prepared by Linda J. Levesque & Daniel Fearon who are Investment Advisors for HollisWealth® and does not necessarily reflect the opinion of HollisWealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisors can open accounts only in the provinces in which they are registered. HollisWealth® is a division of Industrial Alliance Securities Inc., a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

Insurance products provided through Hollis Insurance.

The Way Forward - What's On Your Mind - Third Edition April 2020

Today (April 8th, 2020) saw the opening of Wuhan China after 76 days of lock down.  Apparently it was greeted with cheers and throngs of mask wearing residents taking to the streets.   We are guessing, but we suppose it’s only a matter of time before we get a second wave of COVID-19 in Wuhan.  That said, the government is taking steps to mitigate this risks including quarantine, testing and mask requirements.  This may create a path to follow for the rest of the world.

Many statistics are starting to roll in about unemployment claims and mortgage deferral applications.  The TSX was down 37.4% from peak to trough and has since rebounded 19%.   This has still left markets down around 22% in the first quarter of 2020.  At one point the TSX had reverted back to its 2006 level.  We think this is a strong case for diversification.  Fixed income (the bond market) was not spared with investment grade debt falling 12% from peak to trough.  We also saw the Canadian dollar fall by 12%.  These calculations are our own based on price changes in ETFs that track these indices.

We continue to get a lot of question on what happens next.  We think the playbook is still being written.  Many European economies are beginning to plan their way back to work.  The US which has seemed to lag the rest of the world in this crisis may lag again.  The problem is that we (the world) take much of our market direction from the US.

Many experts are calling for a “V” shaped or sharp recovery.   Frankly we don’t see it because there is no precedent for the pandemic scenario.  We do see a recovery going into the second half of the year and a tapering off.  We think any recover will be more “U” shaped, uneven and muted with bouts of volatility.  Why?  Because too much of the economy has been shuttered and the virus has not been eradicated.  It will take time to get the gears in full motion.   There are also many pundits calling for a long protracted “L” shaped recovery.  Is this possible?  Yes it is.  Will it happen?  Again, no one really knows.  It’s likely the truth lies somewhere among the three scenarios.  Some areas of the economy will ramp up very rapidly and others such as hospitality and restaurants (dine in) for example will take some time to build back up to pre-pandemic levels (if ever).  Some parts of the economy may be permanently shut down.

Has the world fundamentally changed?   Possibly.  We do believe that globalization models may be scaled back and that China could be a net loser in this scenario as large manufacturers look for back up production and even sourced goods locally.  Crucial supplies such as food and medical equipment such as the all-important personal protection equipment or PPE (face masks, gowns, face shields, ventilators etc.) will be sourced locally, even if it is at premium pricing.  However, overall we are not convinced that thousands of years of human behavior will change.  History tends to repeat as does human behaviour.

We remain optimistic that much of lost portfolio values will slowly claw their way back to par.  We are concerned with both the level of government debt and involvement in our everyday lives now.

We are lucky to live in Canada during these times and we hope this will usher in a stronger sense of community that many of us remember growing up.

Linda J. Levesque, CFP^®, FMA, FCSI®

Sr. Investment Advisor

Director, Private Client Group
HollisWealth®, a division of Industrial Alliance Securities Inc.

Levesque Wealth Planning is a personal trade name of Linda J. Levesque
Insurance Advisor

Hollis Insurance

One Corporate Plaza, 2075 Kennedy Road, 5^th Floor, Toronto, ON M1T 3V3
Tel: 416-412-8018 / 1-800-322-4030
Fax: 416-332-6772
linda@levesquewealthplanning.com                                                         

 

  Daniel Fearon, MBA, CFA, CPA(CA)

Sr. Investment Advisor

Director, Private Client Group
HollisWealth®, a division of Industrial Alliance Securities Inc.

Levesque Wealth Planning is a personal trade name of Linda J. Levesque

One Corporate Plaza, 2075 Kennedy Road, 5^th Floor, Toronto, ON M1T 3V3
Tel: 416-412-8018 / 1-800-322-4030
Fax: 416-332-6772
daniel@levesquewealthplanning.com                                                                                          

‘Saving Today for a Richer Tomorrow’®

WANT TO USE THIS ARTICLE IN YOUR WEB SITE?

You can, as long as you include this complete statement with it: Linda J. Levesque and Daniel Fearon, are Senior Investment Advisors and Directors, Private Client Group of HollisWealth®   Linda J. Levesque is an author of The 5 Minute Wealth Plan, Saving Today for a Richer Tomorrow®, in The Road to Success with Jack Canfield and in The Authorities, Powerful Wisdom from Leaders in the Field.  If you're ready to jump-start your life, have more fun and joy in all that you do, get a FREE consultation from Linda J. Levesque and Daniel Fearon. 

This information has been prepared by Linda J. Levesque & Daniel Fearon who are Investment Advisors for HollisWealth® and does not necessarily reflect the opinion of HollisWealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisors can open accounts only in the provinces in which they are registered. HollisWealth® is a division of Industrial Alliance Securities Inc., a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

Insurance products provided through Hollis Insurance.

The Bright Side in a Negative World - What's On Your Mind - Second Edition April 2020

The Bright Side in a Negative World

So maybe there's some good to be had from all this Social Distancing.  We feel that not enough is being said about some of the positives the world is experiencing from our forced time out as the media just focuses on the negative to draw in viewers.

On top of potentially slowing Covid-19 social distancing should also lead to significant declines in:

·                 Crime

·                 The Flu

·                 The common cold (also a corona virus)

·                 h1n1

·                 MERs

·                 SARS

·                 Ebola

·                 Norovirus

·                 Lice in schools 

·                 Pollution and carbon emissions

The planet is literally getting a breather.  Pictures of the canals in Venice and the sky over parts of China show huge declines in pollution levels.  We don't see how it couldn't.

We're probably all going to wash our hands a lot more and possibly eat out a little less.  Some of us have rediscovered past times such as reading, exercising, baking or just plain old chilling with a beverage.

Other positives that we hope come from this period of panic is how interconnected we all are.  Whether through contagion or economically.  When my neighbour loses his job, my pay will be cut. It's really that simple.  I would hope we use this time to focus on what is the most important to us in our journey through life.  Friends, family and health trump assets (and liabilities).  You can't take it with you!

Stay healthy and Take Care 

Linda J. Levesque, CFP^®, FMA, FCSI®

Sr. Investment Advisor

Director, Private Client Group
HollisWealth®, a division of Industrial Alliance Securities Inc.

Levesque Wealth Planning is a personal trade name of Linda J. Levesque
Insurance Advisor

Hollis Insurance

One Corporate Plaza, 2075 Kennedy Road, 5^th Floor, Toronto, ON M1T 3V3
Tel: 416-412-8018 / 1-800-322-4030
Fax: 416-332-6772
linda@levesquewealthplanning.com                                                         

Daniel Fearon, MBA, CFA, CPA(CA)

Sr. Investment Advisor

Director, Private Client Group
HollisWealth®, a division of Industrial Alliance Securities Inc.

Levesque Wealth Planning is a personal trade name of Linda J. Levesque

One Corporate Plaza, 2075 Kennedy Road, 5^th Floor, Toronto, ON M1T 3V3
Tel: 416-412-8018 / 1-800-322-4030
Fax: 416-332-6772
daniel@levesquewealthplanning.com                                                                                          

‘Saving Today for a Richer Tomorrow’®

WANT TO USE THIS ARTICLE IN YOUR WEB SITE?

You can, as long as you include this complete statement with it: Linda J. Levesque and Daniel Fearon, are Senior Investment Advisors and Directors, Private Client Group of HollisWealth®   Linda J. Levesque is an author of The 5 Minute Wealth Plan, Saving Today for a Richer Tomorrow®, in The Road to Success with Jack Canfield and in The Authorities, Powerful Wisdom from Leaders in the Field.  If you're ready to jump-start your life, have more fun and joy in all that you do, get a FREE consultation from Linda J. Levesque and Daniel Fearon. 

This information has been prepared by Linda J. Levesque & Daniel Fearon who are Investment Advisors for HollisWealth® and does not necessarily reflect the opinion of HollisWealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisors can open accounts only in the provinces in which they are registered. HollisWealth® is a division of Industrial Alliance Securities Inc., a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

Insurance products provided through Hollis Insurance.

Today, Tomorrow, the Future: Here's What we Think - What's On Your Mind - April 2020

We have been listening to many conference calls on the markets as of late.  Many of these market calls focus on what has already transpired.  Volatility, the COVID-19 pandemic, the oil price war, the shutdown of global economies and massive corresponding bailouts.  This helps paint a picture of where we are and how we got here but doesn't really help us with what happens next.  The truth here is that no one knows.  Especially the media channels going on and on. 

We firmly believe that in due course things will improve.  

Here are some themes that we think could begin to emerge over the next year or so.  

We feel that Canada might lag behind some of our peers in any economic recovery.  Why?  Canadian oil producers are shutting production down.  We think Alberta will be very repressed economically and this will hurt Canada and the Canadian dollar.  In addition a lot of Canadians were very indebted heading into this pandemic.   This is why we diversify our portfolios geographically.

Also, it is not uncommon to get additional market pullbacks as the economic picture becomes clearer.  That is, we could see more negative days in the stock markets of the world.  We do believe that by the second half of this year (2020) we will get double digit economic growth and then a long and arduous rebuilding of lost economic output.  We think we are 18 months to two years, at least, to get back to where we were in January of this year (2020) based on corrections throughout history. 

We could get a 2nd and possibly 3rd wave of this virus as is common with most viruses.  COVID-19 is beginning to take hold in the US and they have delayed taking precautions (or haven't taken the threat seriously enough).  We think the USA could get an Italy type disaster situation.  Parts of the USA are beginning to build temporary morgues.  We are not trying to scare anyone.  These are the likely scenarios that could unfold. 

There is a big economic mess to clear in the way of renters, landlords, small businesses and the like.  The bailouts will not be uniform and will likely favour big business with lobbying power.

While we don’t try to time the market or predict the future, we are trying to be pragmatic and realistic. We do think we will see significant recovery in account values by Christmas.  Most of the markdowns in the portfolios are temporary.  Fixed income markets in particular have been hit with liquidity issues and have suppressed fund prices (NAVs).  

We think that staying calm and staying invested is the best course of action.  This has proven to be the case through economic catastrophes in history.  Be patient and focused on the future, because the sun will come out tomorrow.  

As always, feel free to call us anytime if you have questions or concerns.  If you think someone would benefit from our articles you can forward them on or have the person contact us to go on our email list.

Linda J. Levesque, CFP^®, FMA, FCSI®

Sr. Investment Advisor

Director, Private Client Group
HollisWealth®, a division of Industrial Alliance Securities Inc.

Levesque Wealth Planning is a personal trade name of Linda J. Levesque
Insurance Advisor

Hollis Insurance

One Corporate Plaza, 2075 Kennedy Road, 5^th Floor, Toronto, ON M1T 3V3
Tel: 416-412-8018 / 1-800-322-4030
Fax: 416-332-6772
linda@levesquewealthplanning.com                                                          

Daniel Fearon, MBA, CFA, CPA(CA)

Sr. Investment Advisor

Director, Private Client Group
HollisWealth®, a division of Industrial Alliance Securities Inc.

Levesque Wealth Planning is a personal trade name of Linda J. Levesque

One Corporate Plaza, 2075 Kennedy Road, 5^th Floor, Toronto, ON M1T 3V3
Tel: 416-412-8018 / 1-800-322-4030
Fax: 416-332-6772
daniel@levesquewealthplanning.com                                                                                          

‘Saving Today for a Richer Tomorrow’®

WANT TO USE THIS ARTICLE IN YOUR WEB SITE?

You can, as long as you include this complete statement with it: Linda J. Levesque and Daniel Fearon, are Senior Investment Advisors and Directors, Private Client Group of HollisWealth®   Linda J. Levesque is an author of The 5 Minute Wealth Plan, Saving Today for a Richer Tomorrow®, in The Road to Success with Jack Canfield and in The Authorities, Powerful Wisdom from Leaders in the Field.  If you're ready to jump-start your life, have more fun and joy in all that you do, get a FREE consultation from Linda J. Levesque and Daniel Fearon. 

This information has been prepared by Linda J. Levesque & Daniel Fearon who are Investment Advisors for HollisWealth® and does not necessarily reflect the opinion of HollisWealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisors can open accounts only in the provinces in which they are registered. HollisWealth® is a division of Industrial Alliance Securities Inc., a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.

Insurance products provided through Hollis Insurance.