Equity markets initially collapsed, then subsequently rebounded sharply.The S& P 500 and TSX Composite are still off 16% and 19% respectively from their recent highs.
A global economic recession is clearly evident.
Many investors either have no cash or are virtually all in cash at this time. These are both bad long term strategies.
China has been vigilant in controlling this pandemic in their own country. Daily new cases and deaths in China are on the decline and have been for quite some time.
In the US and many other countries, the amount of daily cases has only seen a plateauing with no meaningful declines yet. Reopening the US economy, without a vaccine or effective anti-viral readily available, may well lead to a surge in new cases and deaths this fall according to Dr. Fauci, the head of the US Centre for Disease Control.
Consumer spending represents 70% of many domestic economies including the US and Canada. Unless the public feels completely safe, they are going to be very careful about travelling, staying in a hotel, shopping in bricks and mortar retail stores, attending a sporting event.
Specific industries are thriving in this Covid-19 era while others are really struggling and are unlikely to survive in the same form as was the case in the pre- Covid world.
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The December 2018 McMurtry Investment Report Newsletter and the December 2018 Market Commentary with accompanying Growth and Income Portfolis, Sector Weights and Asset Mix are available.