‘We will get through this’: Some of Canada’s biggest money managers on what to make of the market spiral

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Three top strategists are advising clients to hold their nerve and all say the markets will come back

As investors try to make sense of one of the swiftest downward spirals in market history, some of Canada’s biggest money managers are advising clients to hold their nerve.

Before the market opened on Thursday, Bloomberg gathered with three top investors to discuss where we go from here. Around the table were Lesley Marks, chief investment strategist at BMO Private Wealth; Rob Vanderhooft, chief investment officer of TD Asset Management, which manages $394 billion ; and Kevin McCreadie, CEO and CIO of AGF Management Ltd., who sets the direction for about $37.4 billion in assets.

Program trading may be another reason that activity is frantic in the first and last 30 minutes of any trading day and quieter in between. “If you look at the impact on the oil market, it’s very, very negative for Western Canada,” Vanderhooft said. “As bad as US$31 WTI is, US$20 WCS is a lot worse. A lot of companies that were already teetering will go under.”

The increased focus on climate change and sustainability may be factoring into banks’ thinking more now, said Marks. “You already had that major headwind without the latest crisis, without a price war, without the situation between the Saudis and the Russians. We think this will just fuel the fire.” “2008 was a true credit crunch, people didn’t trust each other, banks stopped lending, there was no repo. The world stopped,” McCreadie said, adding there’s unlikely to be “system failure” now.

 

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They have no idea. This is unprecedented. They’re just pulling crap out of their asses.

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