These are difficult times, and the uncertainty that the Coronavirus (COVID-19) has imposed upon our families and communities is unprecedented. We are working closely with our staff, Directors and service providers to ensure that the information and assets of our members will be safeguarded, no matter the circumstance.
There is a great deal of uncertainty and we would like you to know that the health and well being of our members and staff is of the deepest concern to us. We are strongly encouraging our staff and, indeed, all of our members and their families to protect yourself and others by following the guidelines set out by the Public Health Agency of Canada. https://www.canada.ca/en/public-health/services/diseases/2019-novel-coronavirus-infection/awareness-resources.html and local health authorities.
At this point our office remains open, though staff are able to work remotely (and some are) to continue to serve you without interruption. Similarly, the service providers to Tradex and the Tradex Funds, our portfolio managers and our third-party fund providers have robust contingency plans to allow for a seamless transition to alternative work arrangements.
In order to protect your health and that of our staff, we encourage you to continue to communicate with us by telephone or e-mail. If necessary, in-person meetings continue to be available while our office is open. Similarly, the portfolio manager presentations and social gathering annually in April will be postponed.
Turning to recent market volatility, we understand your concern about the pandemic’s impact on economies and markets worldwide. While every investor’s situation is unique, in general it is important to avoid reacting to short-term disruptions. The markets have reacted to government actions, individual reactions and uncertainties associated with the Covid-19 outbreak which combined with the oil price war has brought equity investment globally into a bear market (declines exceeding 20% from February peaks). Central banks and governments are coordinating similar unprecedented responses to support the global economies and citizens. While the future is always unknown, historically investors retaining their equity exposure during bear markets have been better off subsequently to those who sold given the fullness of time.