2019

Q1 in Review

Good day,

Following a tough fourth quarter for global markets in 2018, the TSX Composite recovered to pre-fourth-quarter levels in Q1 and, the S&P 500 recaptured over 50% of Q4 2018 losses during Q1. As of today, the S&P 500 is just 1% shy of its all-time high. These are valuable lessons for investors: www.yesgirls.net losses experienced in one quarter were quickly recovered in the months that followed which validates the importance of patience and maintaining a disciplined investment approach. 

Q1 2019 saw the S&P 500 index rise by 13.07% and the TSX Composite Index rise by 12.42%.  This was accompanied by strong performance in the Canadian bond market for the first time since 2015. Our firm’s most widely used investment pool switched from a defensive Q4 posture to a more aggressive position in Q1 to participate in strong equity market performance. The pool saw a gain of 8.73% in the first quarter due to solid returns in its Canadian and US equity allocations and was also aided by a stronger bond market and weak Canadian Dollar. 

We continue to monitor both corporate earnings growth and stock price valuations.  Earnings continue to grow strongly in our favored sectors (Consumer Cyclical, Consumer Defensive, Technology, Industrials, Healthcare, and Financials) and valuations are more reasonable following the fourth quarter correction.

We continue to believe that coupling this public security selection approach with private debt securities is the right formula for the current economic environment.

Have a great weekend.

Daniel Popescu CFP, CIM, FMA, FCSI

President & CEO

 

“I have prepared this commentary to give you my thoughts on various investment alternatives and considerations which may be relevant to your portfolio. This commentary reflects my opinions alone and may not reflect the views of Harbourfront Wealth Management. In expressing these opinions, I bring my best judgment and professional experience from the perspective of someone who surveys a broad range of investments. Therefore, this report should be viewed as a reflection of my informed opinions rather than analyses produced by Harbourfront Wealth Management Inc.”

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