On Thursday, April 9, Canada and the U.S. released their jobs numbers for March, revealing exponential rises in unemployment in both countries. Despite these numbers, the stock market has been rallying for most of the week – signaling a potential market recovery. In their latest conversation, Sightline’s Paul de Sousa and Warren Gerow try to make sense of these conflicting numbers and the reasons behind them. Specifically, de Sousa and Gerow discuss:
- When Canada and U.S. unemployment rates may start to decrease
- Reasons for the recent stock market rally
- The impact of zero interest rates on defined benefit pension plans
- Potential effects of Canadian and U.S. stimulus checks on the economy
- The potential suspension of minimum RRIF withdrawal
It is important to realize that economic recovery is just like a physical recovery. If you get prescribed 10 days of antibiotics, you may start feeling better after five days, but it is crucial to finish the dosage. Stay cautious, stay the course and stay healthy.
You can listen to Gerow and de Sousa’s conversation here. You can also read our latest market commentary on the coronavirus here. As always, please contact us at (416) 945-6228 with any questions.
Warren Gerow is an independent investment wealth consultant to Sightline Wealth Management.
Sightline Wealth Management LP (“Sightline”) is an investment dealer and is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). Sightline provides management and investment advisory services to high-net-worth individuals and institutional investors primarily through fee-based accounts.
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