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.
Important Information:
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.
Sightline Wealth Management LP is a wholly owned subsidiary of Ninepoint Financial Group Inc. (“NFG Inc.”). NFG Inc. is also the parent company of Ninepoint Partners LP, it is an investment fund manager and advisor and exempt market dealer. By virtue of the same parent company, Sightline is affiliated with Ninepoint Partners LP. Information and/or materials contained herein is for information purposes only and does not constitute an offer to sell or solicitation to purchase securities of any issuer or any portfolio managed by Sightline Wealth Management or Ninepoint Partners, including Ninepoint managed funds.
Sightline Wealth Management (“Sightline”) makes every effort to ensure that the information has been derived from sources believed to be reliable and accurate. However, Sightline assumes no responsibility for any losses or damages, whether direct or indirect, which arise out of the use of this information. Sightline is not under any obligation to update or keep current the information contained herein. The information should not be regarded by recipients as a substitute for the exercise of their own judgment. Past performance is not indicative of future performance. Please speak to your Advisor regarding the suitability of information provided in this article for you. The opinions, estimates, projections and/or recommendations contained in this document are those of the author as of the date hereof.