Brent Todd shares his view on the market
Investment Adviser at Canaccord Genuity, Brent Todd gives insight into today's market.
How did the market crash happen?
Brent Todd believes that in this case, the market is pricing in a fairly disruptive event to the world economy. Most economies were on positive footing heading into 2020. The unemployment rate was at an all-time low, interest rates were low and Donald Trump was heading into an election year. "He (Trump) was, if anything, pouring a lot of gas on the economy. And it was very strong. And that whole process has taken an economy going 100 miles an hour and run it straight into a wall.", says Todd. To add, the markets don't like uncertainty. "The sell-off was somewhat warranted. You can't dismiss it. This is really unprecedented.", says Todd.
The Role Oil and Gas Played
Brent Todd believes that we also can't dismiss, especially in Canada, what happened with oil and gas. This war between Russia and Saudi Arabia is going to hurt the North American economy if it persists. "It's the worst double whammy going because the demand has dried up because people aren't traveling." says Todd.
Advice For Investors
"There are going to be some industries that are permanently hurt, but there's gonna be a lot of companies that are going to bounce back and some are going to bounce back rather quickly and quite hard. So it's a great time to be selectively out there looking." says Todd.