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Wealth Professional Interview with Darren Matte

By April 22, 2020August 24th, 2020No Comments

3 Big Questions That Advisors Have During This Self-Isolation Period

Rob is a guest on WPTV with Darren Matte. They discuss the 3 big questions that advisors are asking themselves during this current global lockdown.

Darren:

Hello and welcome to wealth professional TV. I’m Darren Matte editor of wealth professional Canada magazine. And today we are answering three big questions that you advisers have been asking. Joining me today is none other than Rob Tetrault, senior vice president and portfolio manager at Canaccord Genuity and head of the Tetrault Wealth Advisory Group. Rob, thanks for being here.

Rob:

Hey, great to be here, Darren. Thanks.

Darren:

So these are questions that our team has been able to pull that advisors and industry professionals have been searching on Wealthprofessional.ca for one of the top questions we’ve seen.

Has or will the covid 19 crisis bring on a full recession here in Canada?

Rob:

Well, I think the answer to that there Darren, is almost unequivocally yes. StatsCan came out with some data this week, Wednesday that said that, the month of March was roughly a 9% contraction. They estimated these numbers, but it is kind of an early number.

Q1 Numbers expected to be 2.6% contraction. A recession, as we know, is two consecutive quarters of negative GDP growth or contraction. So we know the Q1 is going to contract at the rate of about, we call it 2% or 3%. We know that Q2 is going to be, I would imagine dramatically worse than that. At a minimum, it’s going to be somewhat worse than that. Cause Q2 is April, may, June, you know, 90% of people are working from home. There’s been millions of people laid off in Canada. I fully expect there to be a contraction in Q2 that will be two consecutive quarters. That will be a definition of a recession.

Darren:

So sticking with the recession theme, where should people look to invest during a recession?

Rob:

There could be potentially a lot of gains made in some sectors, you know, hospitality, airlines, you know, any of the industries that have been dramatically beat up 50% to 60% or 40 %to 60% if life gets back to normal.

And if you believe that life will fully get back to normal, there could be a lot of money made there. However, for those that you know, I don’t want to speculate and just want to own quality assets. You know, there’s a lot of sectors that I’ve moved a lot specifically financials. I’ve moved a lot, you know, the REITs, have moved a lot. There’s a lot of sectors. If you buy quality and you stick to quality, you just want to buy something that’s corrected. You want to collect that nice dividend, which has increased now that the prices are down. Those are fantastic areas to look at. Some infrastructure plays, you get paid while you wait, and when the markets come back, you’ll have a major capital appreciation.

Darren:

And finally, with all this recession talk and markets being as low as they are, how can advisors really make their clients feel secure in the investments that they do have?

Rob:

I think now is the most important time ever in our careers to be proactive and to be doing the right thing. We said this in 2008. We’ve set it for every session. This time it’s a little different because people are home. They’re not working. They’re on their couch. They’re reading the stuff. You’re getting them. So I would strongly advise advisors ramp up their communication style. Think of other methods such as videos, webinars, kind of virtual get togethers with your clients. Clients want to know what you’re doing in my, in my respectful opinion, they want to know, what are you actually doing for me right now? Why am I paying these fees? I think it’s imperative now more than ever to be at the forefront of communication in that way.

Darren:

Great. Thanks so much, Rob. That’s all the time we have, where can our viewers find you?

Rob:

They can go to www.robtetrault.com or if they want to book a no obligation consultation, speaktorob.com

Darren:

excellent. And remember for all the latest news that matters to advisors, make sure to visit wealthprofessional.ca. I’m Darren Matte, thanks for watching.

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