Skip to content
News & commentary

March 2020 Portfolio Management Team Update

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

Elvis Picardo

Market & Economic Environment: After weeks of ignoring the steady drumbeat of negative news emanating from China and other places suggesting that the novel coronavirus was spreading globally, investors’ complacency turned to outright panic in the last week of February, triggering the fastest-ever correction (decline of over 10%) in the S&P 500. Just days after reaching new all-time highs, major US indices endured their worst weekly performance since the 2008 financial crisis in the week ended February 28, as news of significant clusters of coronavirus cases in Iran, Italy and South Korea led to escalating concerns about the potential spread of the virus to North America and the havoc it is wreaking on the global economy. The S&P 500 finished the month down 8.4%, while the Dow Jones Industrial Average (DJIA) plunged 10.1% and the Nasdaq Composite retreated 6.4%. The TSX Composite fell 6.1% in February, as all 11 sectors finished in the red, led by the Health Care, Materials and Energy groups. (Data Source: FactSet)

 

Our Strategy: Market volatility has continued unabated in the first two trading days in March. US equity indices surged 5% on March 2, with the DJIA recording its biggest point gain in history, on optimism that major central banks would take concerted action to support economic growth. On March 3, however, even as the Federal Reserve slashed its benchmark interest rate by half a percentage point in the first such emergency move since the 2008 financial crisis, US indices fell 3% on mounting fears that the coronavirus outbreak could stall the record US economic expansion. As noted in last month’s Newsletter, the Portfolio Management Team (PMT) had expected volatility to be elevated in the near term. Based on this view, the PMT trimmed profitable positions around mid-February and allocated the proceeds to fixed income and other less-volatile securities. The PMT also took advantage of the market pullback to add to existing positions in the first two trading days of March. The PMT expects to make ongoing adjustments to client portfolios to ensure that they are adequately positioned in the current fast-changing market environment.

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

May 2024 Portfolio Management Team Update

May 2024 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Senior Portfolio Manager, iA Private Wealth May 17, 2024 Market Review Global equities fell in April after five straight months of gains, as concerns about sticky inflation and receding optimism about interest rate cuts by the Federal Reserve sapped investor sentiment. However, markets have […]

Read more

April 2024 Portfolio Management Team Update

April 2024 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Senior Portfolio Manager, iA Private Wealth April 10, 2024 Market Review Global equities advanced for the fifth straight month in March, capping a stellar quarter for stocks and enabling the MSCI All-Country World Index to post a record high on the last trading day […]

Read more

March 2024 Portfolio Management Team Update

March 2024 Portfolio Management Team Update By Elvis Picardo, CFA®, CIM, Senior Portfolio Manager, iA Private Wealth March 20, 2024 Market Review Global equities advanced for the fourth successive month in February, as growing confidence in a “soft landing” for most major economies took the MSCI All-Country World Index to a new high. The TSX […]

Read more