2022
Podcast: 2022 Market Outlook & The Omicron Effect
The markets performed admirably in 2021. However, the same cannot be said about the early stages of 2022.
Volatility has crept back into the markets, and we’re seeing one of the few negative months since March 2020.
So, is there something to be worried about? And what’s in store for the rest of 2022?
To answer that question and more, we bring back one of the most insightful portfolio managers in Canada, Drummond Brodeur (Senior VP and Global Strategist at CI Global Asset Management), to the Wealth Wisdom Podcast.
Since we had Drummond on the podcast about this time one year ago, we get a chance to reflect on his 2021 predictions as well.
You can listen to the podcast on these platforms:
Below is a summary of some of the main points that were covered during the episode.
Drummond was right…but there was a curveball
Life is full of curveballs. Just ask Drummond.
You’ll see in the clip below that the experienced portfolio manager was nearly bang on about his prediction for the market in 2021.
However, there was one thing Drummond didn’t predict that had an impact on markets midway through the year.
What we know about COVID’s impact on the markets
This ties into the curveball Drummond touched on during the previous clip.
“That pent up demand that we talked about last year, it was delayed or deferred during Delta, but it wasn’t destroyed,” Drummond said.
“When things sort of eased up again, that came back with a tremendous vengeance in terms of an economic growth path.”
Drummond sums up two of the key lessons we’ve learned about COVID’s impact on the markets in this clip here.
Why the 2021 stock market was like a duck…
Drummond is the unofficial king of metaphors.
This trend dates back to the first time he joined the podcast, when he compared the 2020 crash to “bungee jumping” and recessions in general to “open heart surgery.”
In clip, Drummond explains why the 2021 stock market mimics a duck on the water.
The idea was that although returns on the indexes were admirable, there was a lot of volatility taking place underneath the surface.
“It’s been a challenging, frustrating year for a lot of people, but it’s also thrown up a lot of opportunistic areas where you could take advantage if you’re nimble enough to take advantage of those moves that are taking place underneath the surface,” Drummond said on the episode.
Beating the drum for long-term savers
We’ve now transitioned from metaphors to puns.
In the clip below, Drummond “beats the drum” for long-term savers.
The premise is that, because we live in an environment with extremely low interest rates, investors need to be proactive in protecting their money.
“It’s a message I keep beating on, I still think it is the most important factor long-term for Canadian savers today is making sure you protect your money from inflation, even if inflation’s low, when interest rates are at zero, it’s a huge challenge.”
Next guest
When we plan out our episodes, our team makes a concentrated effort not to solely focus on investments and wealth management.
After all, the concept of “Wealth Wisdom” applies to taking care of your financial, personal and mental well-being.
So, what better way to take care of your personal and mental well-being than to daydream about some travel possibilities?
On the next episode of the podcast, we’re excited to be joined by Claire Newell, Owner of Travel Best Bets.
You might recognize the name from her many appearances on Global TV.
If you have any questions for Claire, or inquires about what you heard from Drummond, please get in touch.
Assante Sana
John Lawson
Senior Wealth Advisor, Assante Capital Management
