To our valued readers,
In order to comply with government directives related to COVID-19, as of Wednesday, March 25, MPL Communications (publisher of AdviceForInvestors.com, The Investment Reporter, Investor’s Digest of Canada, Money Reporter, The MoneyLetter and The TaxLetter) will not be open to the public for at least two weeks. We are exempt under a number of categories from Ontario business closure requirements. Nevertheless, we have decided to operate with a skeleton staff and close our doors out of consideration for our employees’ and customers’ safety. Since staff will be home, we will not be able to respond to telephone inquiries at this time.
That said, until further notice, we intend to maintain our existing publication schedule. We will try to the best of our ability to keep delivering quality financial advice to you but may face delays due to unpredictable circumstances so we appreciate your understanding. Please check AdviceForInvestors.com, our Twitter feed and Facebook page for any updates.
Financially speaking, no company, government or individual will make it out of this unscathed, so perhaps you can take some comfort knowing that you are not alone. Far from it; everyone is affected. You are probably asking, how do I invest during this crisis? Our advice has always been to look for great companies that you can hold for not just a few years, but for decades. At the beginning of 2020, you may have thought the Canadian banks were excellent buys. If so, at their present value, they are begging to be bought! For example, the April Investment Planning Guide of The Investment Reporter recommends buying CIBC at $68 a share, where it closed on March 23. Buying CIBC at $68 a share is more attractive than its Feb. 21 price of $109. CIBC has not changed; it remains a strong, diversified bank and in the long run, the stock will benefit from its U.S. exposure.
Of course, in such volatile, uncertain conditions, it is important to buy more cautiously, slowly and in smaller amounts. In a deflationary period, investors are rewarded for their patience. Acting slowly and carefully will reap benefits. Companies to stay away from are those with shaky balance sheets, since high levels of debt are likelier to sink them in a downturn. Investors must make their own choices according to their own comfort level and what they feel is right for them, but we urge you to keep your ear to the ground, stay invested (in more than one sense of the word), and stay hopeful.
Thank you for giving us the opportunity to continue serving you and for your ongoing support. We look forward to better days and helping you navigate the latest economic speed bump in the meantime.