Monday morning briefing: Sharp rebound
Technology stocks that had previously been outperformers came under pressure last week. These companies included a number of tech giants that announced relatively strong quarterly reports, but pointed to some uncertainty as a result of the pandemic. Amazon.com Inc. reported solid sales results, but said profitability could be challenged by the spread of COVID-19. Twitter Inc. reported weak user growth, while Apple Inc. experienced a substantial drop in iPhone sales.
Economic/industry news
The BoC held its key interest rate steady at 0.25%: Bank of Canada sees interest rates on hold into 2023
U.S. GDP expanded 33.1% in the third quarter: U.S. GDP booms at 33.1% rate in Q3, better than expected
The ECB kept its main refinancing rate unchanged at 0.00%: ECB leaves key rates unchanged in October as expected
Currencies should be used in a diversified portfolio, says Goldman Sachs: What’s the new 60/40? Goldman has part of the answer.
Concerns to watch for in retirement portfolios: 4 concerns retirees must watch thanks to high stock prices
Reasons for hope
Reducing the need for medical care: Regeneron’s COVID-19 therapy reduces viral load, need for care
The WHO is cautiously optimistic about a COVID-19 vaccine: WHO says COVID vaccine trials are ‘encouraging’ but it’ll take time to ensure it’s safe for everyone
Helping to improve mental and emotional health: 10 apps to protect and boost your mental health during the pandemic
Adapting your business
Be open to quick pivots amid uncertainty: Alexa von Tobel: How to grow a company during uncertain times
To be a successful entrepreneur, it is important to overcome fear: Venus Williams’ advice for entrepreneurs: Don’t let fear take over – just push through it
Investors benefit from using a financial advisor: Advisors get an ‘A’ from investors on pandemic response: survey
Finding and keeping great talent at family offices: Help Family Office clients create an employee retention plan
Chart of the week – Sharp rebound
After dropping 31.4%, annualized in the second quarter, U.S. gross domestic product (“GDP”) expanded 33.1% in the third quarter. Consumer spending, business investment and exports all surged higher as economic activity improved with lockdown restrictions easing. While the record expansion was widely expected, GDP remains below the level reached before the COVID-19 pandemic. The question is now how quickly will the economy make up the final 3.5%? Cases are rising, new lockdown restrictions may be introduced and further stimulus may not be coming anytime soon. The recovery ahead could definitely be choppy. Let us know what you think.
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
Is the asset management industry prime for consolidation?: Consolidation is coming for the asset management industry
ETFs can use more leverage: SEC allows ETFs to expand use of leverage, derivatives
IRS releases contribution limits for 2021: IRS boosts 2021 income limits for deductible IRA contributions
News and notes (Canada)
TD Direct Investing launches the TD GoalAssist: TD launches financial planning app
ETF flows should remain robust in the fourth quarter: Where to expect ETF growth
The top 40 under 40: Canada’s top 40 under 40: The next leaders for 2020
Canadian DB plans post a positive return in the third quarter: Canadian DB pension plans post 3.2% return in Q3: report
MFDA serves mass market investors: Fund dealers focus on middle-class investors