Investor Education: The Impact of COVID-19 on the Global Markets with John Nicola and Rob Edel
PODCAST March 26, 2020
COVID-19 has made a huge impact on the economy and the global markets. So what do investors need to know to ride the storm? Host Mark Therriault speaks with Nicola Wealth CEO John Nicola, and Chief Investment Officer, Rob Edel about the COVID-19 outbreak and look at exactly how it’s impacting the global economy and markets.
They discuss their predictions for the future, possible opportunities, what investors can do to protect themselves going forward, and much more.
[:16] About today’s episode.
[:45] Rob Edel gives a macro-level view of what’s happened in the markets with regards to COVID-19.
[1:48] John Nicola gives his thoughts on the current market pricing and what we should be keeping in mind in regards to it.
[4:53] How this current crisis is similar (and different) than the last two big drops we’ve seen in the market (the dotcom crisis and the 2008 subprime mortgage crisis).
[6:16] Would it be safe to assume that, when this crisis passes, the recovery will be much faster than what we’ve seen in the past?
[9:23] With the major banks in Canada allowing businesses to apply to suspend having to pay mortgages and other associated debts for up to six months, does Rob and John think that the government is going to supplement businesses or banks for doing this?
[12:25] With many businesses closing down right now, is there also a possibility that the markets themselves may also close down for a period of time?
[13:48] Rob gives his advice to investors on what they can do to protect themselves during these trying times.
[14:57] John speaks about what Nicola has been doing to protect themselves and their investors against this crisis.
[17:26] With regards to cashflow, at what point does cashflow become a talking point? I.e. should we be expecting cashflow to be able to continue throughout the crisis?
[20:26] At what point can we look at the crisis and see it as an opportunity from an economic standpoint?
[22:38] Key learnings about how John is looking at portfolios right now.
[24:44] Does Rob and John expect there will there be a lagging effect on the performance of private assets?
[26:46] Rob and John give their closing words of advice on riding out the storm.
[28:44] Mark thanks Rob and John for joining the podcast today.
John Nicola is the Chief Executive Officer and Chairman of Nicola Wealth Management. In his roles, he provides strategic leadership to Nicola Wealth, exercising his passion for providing innovative solutions to clients’ complex problems.
John has been a veteran of the financial services industry since 1974. His areas of expertise include: investment management, estate and financial planning, and business planning with a focus on best practices for wealth building, exit strategies, and shareholder agreements.
For his full bio, visit: NicolaWealth.com/Our-Team/John-Nicola
Rob is the Chief Investment Officer at Nicola Wealth. Before joining the team at Nicola Wealth, Rob spent nine years working for one of Canada’s largest money managers and — most recently — as a Portfolio Manager responsible for managing U.S. equities for the firm’s high net worth clients. Previous to that, he spent seven years working for the Treasury Department of a Major Canadian Chartered Bank, splitting his time between Vancouver and Toronto. Rob has completed his CFA and is a member of the Association for Investment Management and Research (AIMR).
For his full bio, visit: NicolaWealth.com/Our-Team/Rob-Edel
About the Host — Mark Therriault
Mark is a Financial Advisor and partner of Nicola Wealth — and host of the Investor Education and Why I Built It editions of The Wealth Exchange podcast.
As a member of the Nicola Wealth Planning Team since 2006, Mark has become a trusted advisor to his clients. He prides himself on providing an exceptional client experience while quarterbacking their financial affairs.
Mark earned his Bachelor’s degree in Economics with a minor in Finance from the University of Calgary. He went on to secure his CFP designation and also completed the CIM, CSC, the B.C. Life Insurance License.
For his full bio, visit: NicolaWealth.com/Our-Team/Mark-Therriault
For More Information on this Week’s Episode, Visit:
At the time of recording Nicola Wealth holds Royal Bank in our portfolio.
The Nicola Core Composite returns represent the total returns of Cdn. dollar denominated accounts of all fee-paying portfolios with a Nicola Core mandate. The composite includes clients who are both fully discretionary and nondiscretionary. Historical net of fee composite performance returns are calculated using individual realized time-weighted client returns net of fees and is presented before tax. The Nicola Wealth inclusion policy is based on clients’ weights at calendar month end. The composite returns are asset-weighted based upon ending monthly market value. The Nicola Core mandate may change throughout time. Additional information regarding policies for calculating and reporting returns is available upon request. The composite returns presented represent past performance and is not a reliable indicator of future results, which may vary.
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