Quarterly Market Commentary – Sprung Investment Management

FIRST QUARTER 2020 RETROSPECTIVE AND PROSPECTIVE

April 20, 2020

The first quarter of 2020 started off well but didn’t end that way. At the beginning of the year, we expressed concerns over the level of market valuations, rising global debt levels, international trade disputes and their effect on supply chains and business planning as well as other geopolitical tensions. Admittedly, we did not factor in a sudden GLOBAL PANDEMIC!

THIRD QUARTER 2019 RETROSPECTIVE AND PROSPECTIVE

October 22, 2019

Economies are the cumulative reflection of the myriad of transactions taking place every day. In order for a transaction to take place, there must be a buyer and a seller. Both parties to the transaction believe that they are receiving adequate compensation, no matter on which side of the trade they reside. In financial markets, buyers and sellers are expressing differing expectations for the object being sold. Markets have continued to rise for a long period of time, indicative of there being more optimism that economic conditions will continue to improve.

SECOND QUARTER 2019 RETROSPECTIVE AND PROSPECTIVE – The Times They Are A-Changin’

July 15, 2019

Global conflicts in trade are beginning to impact economic outcomes in very fundamental ways. The disruption resulting from these trade skirmishes is evident in both the bond and equity markets. The times they are a-changin’… In Canada, the S&P/TSX Total Return Index advanced 2.6% in the second quarter of 2019, bringing the year to date to 16.3%. The US market advanced 4.3% in the quarter as measured by the US dollar denominated S&P 500 Total Return Index. The S&P 400 MidCap Total Return Index lagged the 500 with a 3.0% return in this quarter. Markets represented by the MSCI EAFE Price Return index posted a positive 2.5% return as measured in US dollars or a 0.5% return in Canadian dollars. The Canadian dollar appreciated 2.2% to its US counterpart in Q2.

FIRST QUARTER 2019 RETROSPECTIVE AND PROSPECTIVE – What a difference a quarter makes!

April 17, 2019

After a dismal end to last year, global stock markets rebounded in the first quarter making up much of the ground lost in the final quarter of 2018. The underpinnings of this sudden reversal in sentiment are less clear. There appears to be a disconnect between the direction of the stock markets and the direction of the global economies. Economists continue to moderate the outlook for future economic growth. The issues that vexed the markets in 2018 remain and in many cases, those issues have deteriorated even further.