Market Update: Adding Oil To The Coronavirus Fire

We would like to provide you with another update on investment market developments and recent market conditions.

Since our letters to investors dated February 27, 2020 and January 31, 2020, global markets have continued toexperience significant volatility.

Today the markets are reacting to both the worsening situation with regards to COVID-19 contagion (as evidenced in northern Italy) and the effect this will have on economies, as well as the Saudi-led oil price war that was escalated over the weekend.

  • We would like to reiterate to our clients that we have been positioning accounts ahead of this and:
  • Have raised and continue to hold cash
  • Have very little to no energy stocks
  • Have lowered equity exposure

Maintained alternative assets including real estate that tend to run counter to market declines

Having concerns when volatility affects your portfolio is normal. That is why we emphasize the importance of atailored financial plan; one that accounts for such vagaries of the market while making strides toward your long-term financial goals.

As said in our last newsletter:

We have raised cash and rebalanced portfolios to navigate the volatility and are well positioned in portfolios to be able to (re)purchase some of our favourite companies at a significant discount.

For those who are currently accumulating for retirement and have the ability to add cash they have been saving, should consider doing so as they have a potential once-in-a-decade opportunity to embrace the volatility and add to their portfolio. A deep opportunity to purchase great companies at a significant discount is presenting itself.

We anticipate periods of continued high volatility until COVID-19 is contained and are here to provide you not only with insight, but with advice on how we can help manage the effects and opportunities of the market’s movements.

We welcome you to reach out to us to discuss how this impacts your personal portfolios as we remain just a phone call away.

As always, we thank you for the trust you place in us.

The views expressed in this commentary are those of Tall Oak Capital Advisors as at the date of publication and are subject to change without notice. This commentary is presented only as a general source of information and is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide tax or legal advice. Statistics, factual data and other information are from sources Tall Oak believes to be reliable but their accuracy cannot be guaranteed. This commentary is intended for distribution only in those jurisdictions where Tall Oak Capital Advisors are registered. Securities-related products and services are offered through Raymond James Correspondent Services Ltd., member Canadian Investor Protection Fund. Insurance products and services are offered through Gryphin Advantage Inc., which is not a member-Canadian Investor Protection Fund. This commentary may provide links to other Internet sites for the convenience of users. Tall Oak Capital Advisors is not responsible for the availability or content of these external sites, nor does Tall Oak Capital Advisors endorse, warrant or guarantee the products, services or information described or offered at these other Internet sites. Users cannot assume that the external sites will abide by the same Privacy Policy which Tall Oak Capital Advisors adheres to.