Market Commentary: Trade Wars, Types of Stocks to Look Out For, and an Economy Overview
PODCAST September 20, 2018
This episode, host Mark Therriault speaks with Chief Investment Officer of Nicola Wealth, Rob Edel. They touch on a variety of subjects, such as: the trade wars between the U.S. and China, NAFTA, interest rates continuing to go up in the short term (and what that means for the U.S. economy as well as Canada), what kind of stocks you should be looking for in this type of environment, as well as an overall review of the Global economy itself.
Rob also explains the reasoning behind the yield curve flattening or inverting, the big concern about inflation, what companies and opportunities he sees outperforming in this type of environment in the short to medium term, his thoughts on whether or not China will be able to withstand the imposing tariffs on their imports by the U.S, and if he thinks Canada is positioned safely in terms of where things are going economically in the U.S.
[:29] About today’s guest and topic of conversation.
[1:11] Mark summarizes some of Rob’s ideas from the Monthly Market Commentary and Rob makes some additional comments about the yield curve and what it indicates.
[2:48] Would the reasoning behind the yield curve flattening or inverting be because of the economy becoming weaker?
[4:00] About the indicators that point to the U.S. still being a strong economy.
[5:36] Does Rob think that the whole tax reform has created a false sense of the economy doing better than might actually be?
[6:34] What’s the big concern about inflation?
[8:16] What kind of opportunities and companies is Rob looking for in this type of environment? What will outperform in the short-medium term?
[9:55] Will a stronger U.S. dollar (against the global economy) serve as a headwind?
[10:57] Why is the U.S. talking down their dollar? And will they continue to?
[11:45] Are we safe from the trade wars yet? What has changed?
[13:14] Rob’s new news in regards to China in the trade wars.
[13:58] Would China be able to withstand the imposing tariffs on their imports or are they at the heels of Trump and the U.S. administration?
[15:50] Does Rob still feel that Canada is safely positioned in terms of where things are at economically in the U.S.?
Mentioned in this Episode:
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 — Mark Therriault
Mark is the Financial Advisor and partner of Nicola Wealth Management — and your host for The Wealth Management podcast.
As a member of the NWM Planning Team since 2006, Mark has become his clients’ trusted advisor. He prides himself on providing an exceptional experience to his clients 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.
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 NWM 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. NWM 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. NWM is registered as a Portfolio Manager, Exempt Market Dealer and Investment Fund Manager with the required provincial securities’ commissions in Canada.