Morning Minutes 9/17/2020

Morning Minutes

Stocks Slide With Central Banks and OPEC in Focus

September 17, 2020

At SIA Wealth Management everything we do is based on Relative Strength Analysis. We evaluate the Relative Strength between asset classes giving us insight into money flows on a large scale, and from this select top ranked investments.

Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
ccieszynski@siawm.com
+1 (647) 282-4428

Equity markets around the world have been backsliding overnight and into this morning as investors digest developments across a number of fronts. US index futures are down 1.0% (Dow) to 2.1% (NASDAQ) this morning, while in Europe, the Dax is down 0.75% and the FTSE is down 0.45%.

There have been three central bank meetings in the last 24 hours. The US Fed held monetary policy steady and issued mixed forecasts. FOMC members forecast that US interest rates are likely to remain very low through 2023, but at the same time, they upgraded their 2020 US GDP forecast to -3.7% from -6.5% in June and their 2020 unemployment rate forecast to 7.6% from 9.3% in June. Overseas, the Bank of Japan maintained stimulus but upgraded its economic outlook slightly. The Bank of England maintained policy as well but talk of exploring negative rates has knocked the pound down 0.6% against the US dollar today.

Crude oil prices are down slightly today with WTI falling 0.5% and Brent slipping 0.3%. Natural gas is down another 2.0%. Crews reportedly are starting to return to Gulf of Mexico production facilities now that Hurricane Sally has gone through and investors have turned their focus back to today’s OPEC meeting and an uncertain outlook for energy demand.

 

New Video: Market Commentary and Portfolio Update – September 16, 2020

With Ted Bader – President of SIA Wealth Management, Paul Vendrinsky – Portfolio Manager and Colin Cieszynski – Chief Market Strategist

A new webinar replay is available featuring Paul Vendrinsky, Portfolio Manager, discussing recent performance and activity in the five funds which SIA Wealth sub-advises on for BMO Global Asset Management and Colin Cieszynski discussing current trends in world markets.  A PDF version of the presentation is available.

GoToMeeting Version: https://attendee.gotowebinar.com/recording/585579411904064524

YouTube Version: https://youtu.be/LEbMDBRR0Ck

Disclaimer: SIA Wealth Management Inc. (SIAWM) specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIAWM nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.