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Market Outlook The incentives for investing are improving. Back in January, valuations were so priced to perfection there was room for risk. Over the past 25 years the market has been characterized by benign inflation, sustained global growth and liquidity. It appears there is a paradigm shift happening. The speed to which risk can manifest itself for instance. Being prepared for any market, with some investments to hold when markets decline for example. When we get shocks in the economic system, different assets classes respond differently. Currently we have a growth shock that is also deflationary. This suggests cash, long duration treasuries and gold are the holdings that are expect to do best. They have been advising to have something to deal with every market environment. Diversification is the real key. Small business in Canada represents 98% of all businesses in the economy and they have an average cash buffer of 27 days. It is unlikely this will be a V-shaped recovery. Potentially the market is still underestimating the growth impacts. You should start to think how to add those segments that will do well.

Tech ETF? You need to think about the demand for Cloud technology and remote technology. Some of these companies have already had a sizable jump in value. You may want to think about cyber-security. CYBR is one to consider as more commerce and work is conducted online. This is a highly volatile market, so you should only consider taking 1/5 of the exposure you want to take as volatility is 5 times higher than normal.

Preferred shares? This is indicative of high yield investments that act as equity when the market is under duress. ZPR is an example that is down 35% for the year. The global bailouts amount to $12 trillion and this is driving interest rates down to zero. Rate resets that use these long term rates to set the dividend will cause them to fall in value.

There is heavy financial sector exposure in the CPD ETF. They hold 35% banks, 20% insurance and 17% energy -- all are economically sensitive. You may want to hold utility preferred shares instead that operate under more of a regulated rate of return.

This corporate bond ETF still holds some equity risk as it has corporate exposures. You have to be careful as bond markets have shown limited liquidity lately. The US has announced another $700 billion in assets, but sill be careful, but you could consider a partial buy here.

This covered call utility ETF holds a portfolio of utility stocks that sells call options. This caps the upside for any potential recovery. Even with the premiums and dividends collected it has lagged a typical utility ETF. You end up taking 90% of the downside but only 50% of the upside. In a sideways market it can enhance your returns, but lags other in a bull market. He would pass on this one.

(A Top Pick Jan 29/19, Up 39%) This asset does well in a deflationary shock period. It has a 20 year duration, so the impact was significant when interest rates dropped.

(A Top Pick Jan 29/19, Down 23%) It was added by a 10% dividend. This was meant to be diversified out of Canada. The pandemic impacted global assets unfortunately. Going forward real estate may struggle as businesses evaluate how big their real estate foot print needs to be.

(A Top Pick Jan 29/19, Up 1.5%) Global Risk Parity balances the risk of growth and inflation. It balances the risks to keep you level. The peak draw down was 12% -- very manageable in the context of recent volatility.

Hold? The underlying exposure is 22% financial services, 9% materials 3% real estate and industrials are 13%. This is pretty pro-cycle in its holdings. Right now you want to be owning more utilities and consumer defensive names. Be careful if there is another leg down. Wait until there this confirmation in a market recovery before buying more.

Cuts in dividends? This ETF covered writes about 33% of the portfolio. The higher volatility in energy adds well to value -- buffering about 10% of the total loss. The dividends could be cut entirely by the companies. The premiums would likely maintained.

In deflationary shock periods you want access to gold. He likes that you could take physical delivery of gold rather than through futures. It also avoids exposure to companies potentially being limited in their mine operations due to COVID-19 restrictions.

It is not too late to still get some of this return -- it is up almost 25% this year. Government bonds are a great thing to own. You can buy in either US or CAD dollar denominations.