Market Commentary: Slowing Global Growth and the Upcoming U.S. Election
PODCAST October 23, 2019
Host Ethan Astaneh, Nicola Wealth Financial Advisor, speaks with Chief Investment Officer Rob Edel to provide a market commentary on Q3 2019.
Rob provides a market update and discusses factors that are impacting markets leading to slowing global growth, including the continuing trade war, the upcoming U.S. election and the policy uncertainty that comes along with that outcome.
[:55] Ethan welcomes Rob back to the podcast.
[1:14] Rob provides a recap and an update on the situation between the U.S. and China and the status of the trade tensions.
[3:43] What Rob has been paying attention to in the last few months in regards to key economic indicators to identify the health of the global economy.
[5:18] Does Rob view the timing of a recession being influenced by what’s happening in the interest rate cycle?
[6:22] Does Rob think that if we continue to stay in this low interest rate environment that a recession would be less imminent?
[8:02] Rob elaborates on why investors should be careful to not be too bearish in their stance as to not de-risk their portfolios too much in anticipation of a recession.
[9:09] Are there any developments that Rob has identified as issues that markets wouldn’t exactly be very good at pricing in or, with there being so much uncertainty around them, that it would be too difficult to do so?
[10:45] As we navigate forward, what type of considerations will drive how we’re positioning with regards to stock market investing? Is this a time to be focusing on the defensive sectors or is there a more preferable approach to take?
[11:42] Rob speaks about how yield-oriented investments would generally function as we transition into and through a recession (and why we hold onto them.)
[12:42] Rob gives his predictions on some of the key economic things that Canada will be facing over the next several years considering the approaching election.
[14:12] Would it be a fair statement to say that negative interest rates are still largely a conceptual construct?
[15:25] Rob gives his thoughts on the evolving area that is climate change.
[17:20] How Rob sees the next several months panning out from the perspective of the trade war and what certain outcomes in the U.S. election might mean.
[19:10] Rob speaks about the role that private assets have in a portfolio (as opposed to publicly traded assets) and the value of holding those types of assets.
Rob is the Chief Investment Officer at Nicola Wealth Management.
Before joining the team at Nicola, Rob spent 9 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 Your Host
Ethan is a Financial Advisor in the firm’s Vancouver office. He provides strategic advice to high net worth business owners, professionals and retirees, and offers his clients a wide range of financial services, including; retirement income planning, business succession and continuation planning, investment management, tax and estate planning, charitable giving, and intergenerational wealth transfer.
For his full bio, visit: NicolaWealth.com/Our-Team/Ethan-Astaneh
This presentation contains the current opinions of the presenter and such opinions are subject to change without notice. This material is distributed for informational purposes only and is not intended to provide legal, accounting, tax or specific investment advice. Please speak to your Nicola Wealth Advisor regarding your unique situation. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Nicola Wealth fund returns are quoted net of fund-level expenses. Past performance is not indicative of future results. All investments contain risk and may gain or lose value. Projected returns are estimates only. Returns are not guaranteed. Nicola Wealth is registered as a Portfolio Manager, Exempt Market Dealer and Investment Fund Manager with the required provincial securities’ commissions in Canada.