It's November and the results of the US election are still being determined. So while Wall Street and the rest of the world await the final count we thought we'd get you up to speed on what happened in the markets last month, how investments are performing and what this all means for you.

So, what happened in the markets last month?

• October was a month of significant market movement starting with US President Trump's coronavirus diagnosis and ending with new lockdown measures being introduced by countries including France, Germany and the UK.
• Brexit negotiations continued beyond UK Prime Minister Boris Johnson's October 15th deadline with two weeks of intensified talks that led to no agreement. Talks are anticipated to run into November as both sides work towards a resolution before year end.
• Third-quarter corporate earnings were announced and overall beat analyst predictions. In the UK, the majority of big banks saw a return to profit and discussed the possibility of restarting dividend payouts to shareholders after putting them on hold at the beginning of the pandemic.
• The IMF (International Monetary Fund) released forecasting predicting China will be the only country to see major economic growth in 2020 as the country reported its economy grew by 4.9% in the third quarter.

And how are investments performing?

October was a tough month for markets with global equities experiencing their worst week since March. The lead-up to the US presidential election, rising global coronavirus cases and the introduction of new lockdown measures were key factors in causing significant market swings.

The highest performers of the month? Funds concentrated in emerging markets and Asia saw strong results thanks to China's economic growth and low coronavirus cases.

 

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

We probably don't have to tell you that there's lots of uncertainty right now - especially given that we've just entered our second lockdown in the UK. Some of our clients have been asking how they should think about what's going on, and the future. So we just published a piece in our Magazine where we speak with Ben Reeves, Wealthsimple's chief investment officer, about what's happening in the economy right now and what we can expect to see depending on variables like inflation rates and stimulus.

Our take? Our approach has stayed the same. We believe that, over long periods of time, diversified portfolios of risky assets will provide attractive returns. And, by and large, you get higher returns when you take more risk. Unless your personal situation has changed, our advice would remain the same.

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