December 2019 Market Update

Welcome to the December edition of your monthly market update. Through this update we keep you in the loop on on what happened in markets last month and what it means for you (and your money).

So, what happened in the markets last month?

• Global markets saw steady growth thanks in part to encouraging economic data from China and Europe, with investors continuing to move money from bonds to stocks
• November proved a bit of a stalemate for the U.S.-China trade negotiations after positive progress in October. Both parties say they are willing to put pen to paper but with the next round of tariffs on Chinese imports scheduled for 15th December this continues to be one to watch
• The U.K. is in general election mode. The pound saw a surge in value at the beginning of the month, likely due to pro-business policies advocated by the Conservative Party, with the end of November seeing the electorate more divided on which party will provide the best path forward

And how are investments performing?

• Building off of October momentum, equities (stocks) continued to see overall positive returns in November. The only asset class that moved against this trend was emerging markets which dipped slightly in the other direction
• This month’s strongest performer? The US Equity holding which grew by 2.79%
• The worst performer? The Emerging Market Equity holding which fell by -0.79%

Lastly, what does all this mean for me and my money?

With a general election coming up there isn’t a day that goes by without alarming newspaper headlines, political rows or dire predictions from strangers at the supermarket. First, it’s important to remember that no one (not even politicians) can predict the future, especially when it comes to the financial markets.

In the short term, there will likely be some volatility from the election—markets don’t like uncertainty. But, it’s important to keep your eye on your long term goals. And the long term has been historically much easier to predict.

The bottom line: successful investors concentrate on what they can control. Like paying low fees, being invested in a globally diversified portfolio and automating your finances - like setting up a monthly direct debit - so you're less likely to react out of fear (or elation) and forget the wisdom of your long-term plan.

That’s all for now but if you have any questions, you can always reach out to support@wealthsimple.com or book a call with a member of our investment team here.

Take care,

James

Investment Adviser

Wealthsimple