Skip to content
News & commentary

April 2020 Portfolio Management Team Update

Home News & Commentary April 2020 Portfolio Management Team Update
Elvis Picardo

Elvis Picardo

Market & Economic Environment: March 2020 will go down in history as the month of the “Coronavirus Crash.” Global stock markets posted their biggest monthly decline in decades and the worst quarterly performance since 2008, as the worldwide spread of the coronavirus triggered unprecedented shutdowns in most regions of the global economy.

The TSX fell 17.7% in March to finish the first quarter (Q1) down 21.6%. All 11 sectors on the TSX finished in the red in the quarter, as Energy, Healthcare and Real Estate declined at least 30%. The Canadian dollar fell below 70 U.S. cents, while crude oil slumped by a record 65% in Q1. The S&P 500 tumbled 12.5% in March for a Q1 plunge of 20.0%, while the Dow Jones slumped 23.2% for its worst quarterly performance since 1987. Most major markets in Europe and Asia also fell at least 20% in Q1.

The month finished on a much better note than it had begun, as markets staged a massive rebound in the last week of March that carried over into the first two weeks of April. The TSX surged by a record 12% on March 24, as North American equities commenced a recovery that clawed back part of the steep losses inflicted in the preceding four weeks. The market recovery was fueled largely by optimism that the number of coronavirus cases and fatalities in the worst-affected regions such as Italy, Spain and New York are leveling off, as well as record levels of fiscal stimulus in Canada and the U.S. (Data Source: FactSet)

Our Strategy: At the present time, there is growing confidence that the worst-case scenario of overwhelmed health care facilities and a prolonged lockdown of the global economy has been averted. Stocks have surged from their March 23 lows, and our portfolios have participated in most of the market upside since then. Our balanced portfolios also held up very well during the steep correction, bolstered by their diversified holdings and blue-chip stocks.

The Portfolio Management Team (PMT) rebalanced client portfolios in the first half of March, trimming profitable positions in fixed income and adding to positions in blue chips that had plunged. The PMT anticipates market volatility to abate from its extremely elevated levels in March, which could put a floor under stocks and enable them to retain most of their recent gains. While the economic environment remains uncertain, the relief measures and actions taken by governments and central banks may make a potential recession a relatively short one. The PMT intends using significant dips to add to positions and will continue to make ongoing adjustments to client portfolios as required by market conditions.

Please contact any member of the PMT if you have any questions or concerns regarding your accounts.


This information has been prepared by Luft Financial. Opinions expressed in this article are those of Luft Financial only and do not necessarily reflect those of iA Private Wealth. Furthermore, this does 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.

How do we elevate your wealth?

It begins with understanding your needs and creating a comprehensive and tailored financial plan to help reduce tax, manage risk and grow your portfolio over the long term. Learn more about how we help you achieve financial security and peace of mind.

News & commentary

November 2023 Portfolio Management Team Update

November 2023 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Portfolio Manager, iA Private Wealth November 23, 2023 Market Review Global equities extended declines in October, falling for three straight months for the first time since the summer of 2022. However, the November 1 announcement by the Federal Reserve that it was holding off […]

Read more

October 2023 Portfolio Management Team Update

October 2023 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Portfolio Manager, iA Private Wealth October 25, 2023 Market Review September lived up to its reputation as the worst month of the year for stock markets, with global equities posting significant declines as rising bond yields fueled concern that interest rates would stay elevated […]

Read more

September 2023 Portfolio Management Team Update

September 2023 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Portfolio Manager, iA Private Wealth September 20, 2023 Market Review  Global equities retreated in August, after posting their best performance in the first seven months of a year since 2009, as uncertainty about the future trajectory of interest rates – fueled by stubbornly high […]

Read more