Portfolio Corner: Let’s Talk U.S. Politics

As The Pendulum Swings By Steven Mayo

We enter 2020 with many positives. The stock markets are on a roll, partly because the recessionary concerns of the summer are now replaced with many issues being somewhat resolved — Brexit is moving forward, Phase 1 of the U.S.-China Trade Agreement has just been signed as I write, better European and Emerging Market news, and good earnings.

Of course as the markets rallied in 2019 more dollars were put to work in the fall helping to fuel the year-end global rally we experienced.

Everyone is now comfortable. This rally provides for the ability to do some profit taking and it allows an investor to re-assess their portfolio over the next six months.

Being this is an U.S. election year, there is likely to be some added political influence in the markets.

For example, if Elizabeth Warren were to win the Democratic nomination, the Wall Street crowd would be concerned about the effect of her positions on energy companies, health care, financials, technology regulation, and possibly defence.

All of these sectors will be in the forefront of the discussion/debate in 2020.

However, there is still a good chance that President Donald Trump will be re-elected, as I would be very surprised if the impeachment process resulted in the U.S. Senate removing him from office.

As history has shown, there tends to be a pattern of U.S. voters re-electing Presidents, as the last 40 years are shown below . . . Ronald Reagan (Republican) 1/20/1981- 1/19/1989 (2 terms) George H.W. Bush (Republican) 1/20/1989 – 1/19/1993 (1 term) Bill Clinton (Democrat) 1/20/1993 – 1/19/2001 (2 terms) George W. Bush (Republican) 1/20/2001 – 1/19/2008 (2 terms) Barack Obama (Democrat) 1/20/2008 – 1/19/2016 (2 terms)

For 2020, I think investors should have another look at the defensive stocks that had done well when the markets were worried about a recession in August, and have since pulled back. These being utilities, REITS, and telecommunications.

This is a time for investors to reacquaint themselves with their goals, and not chase indexes. Markets have a habit of humbling us. With the added noise of U.S. politics for 2020, I expect interesting times ahead.

Consider the following quote to end this column: “Democracy cannot succeed unless those who express their choice are prepared to choose wisely. The real safeguard of democracy, therefore, is education.” ~ Franklin D. Roosevelt

Steven Mayo is a Vice President, Director, and Investment Advisor with RBC Dominion Securities Inc. (Member — Canadian Investor Protection Fund). This article is not intended as nor does it constitute investment advice. Readers should consult a qualified professional before taking any action based on information in this article.

A FAN WORTH CHEERING ABOUT

Sure, hockey was the main draw. But it was also family time. As a kid, Dick looked forward to getting together with uncles, aunts and cousins before the game. They’d all have dinner at Pete’s Place, then cross the street and go to the back door with their tickets. In a way, the Spits became part of the family by bringing everyone together.

BIZ X MAGAZINE • FEBRUARY 2020 27 If you’ve ever been to a Windsor Spitfires game, chances are you’ve seen him. He’s known as the “Flag Guy” because of the giant Spitfires Flag he proudly waves. As far as fans go, Dick “Flag Guy” Tracey is in a league of his own. How did it all begin? The flag waving started in 2008 when, in response to his wild shouting at Spits’ games, his girlfriend (now wife) asked, “Why don’t you just get a flag?” When Dick replied that flags were too expensive, his wife went ahead and bought him one, which they mounted on a hockey stick. The rest, as they say, is history. But this story of fandom goes back even further. In fact, Dick’s passion for the Spitfires was sparked in 1975 when his dad (Dick Sr.) took him to a game for his birthday. Like his father, Dick quickly became a diehard Spits fan. As the story goes, Dick’s father was well-known back in the days of the “barn”, the Spits’ old downtown arena. Reminiscing about that era, Dick fondly recalls memories of his dad sitting in a box above the visiting team’s bench. “He’d taunt the other team relentlessly,” Dick remembers. “He’d get thrown out but just buy another ticket and sneak back in.” Dick’s most memorable experience was when he travelled to Kitchener a decade ago to catch the Spits play the Rangers. As Dick recounts, “The Spits were down, 3-0. The game before, I was named the Ultimate Fan.” He received a special BMO Ultimate Fan jersey and two tickets for the next away game in Kitchener. The Spits beat the Rangers in that game, eventually advancing to the finals and going on to win the Memorial Cup. For a fan like Dick, winning isn’t what matters most. Sure, it’s amazing to see your team become champions, but it’s really about supporting your team no matter what. That’s why Dick decided to become a Season Ticket Member (STM). He says it just made sense economically because before becoming a STM, he was paying full price for game-by-game tickets. More than a great deal, being an STM means Dick can be there for every game. “I know the team looks for me, so I never want to miss a game.” On game days, he’ll go straight home and pick out his jersey. If it’s a special game, he’ll put on his fan makeup. “I try to be positive all day to send good energy to the boys,” Dick says. “I feel like I’m part of the team.” Find out all the benefits of being a STM at: spitspass.com

1. Checking out the silent auction table were: Rob Mathers, Broker of Record, Rob Mathers Realty Ltd.; Sue Mathers; Ben Klundert, President of BK Cornerstone Design Build Ltd.; Sue Klundert; Chris MacLeod, Broker, Distinctive Homes & Real Estate and Angie MacLeod. Auction proceeds from the Windsor-Essex County

December 6, 2019 at The Ciociaro Club, 3745 North Talbot Road, Oldcastle. Photos by Rod Denis. All people in photos listed from the left. Windsor-Essex County Association Of REALTORS 18th Annual “Gala & Silent Auction”

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Association Of REALTORS gala benefitted The Hospice of Windsor and Essex County Inc. and W.E. Care for Kids, as well as various other charities and local projects.

2. Anna Vozza, Salesperson for Bob Pedler Real Estate Limited was invited to join in the Manor Windsor Realty Ltd. (a “Bronze Sponsor”) group shot with Sales Representative Diane Boin; Brokers Rob Agnew and Julie Bondy; Sales Representatives Sanja Bojovic, Maria Franzoi and Tom Hunter.

3. Pinnacle Plus Realty, Ltd. was also a “Bronze Sponsor” for the holiday gala and

was represented by its Partners/Agents and their wives — Mac and Melissa Laforest, Larry Pickle, John and Sofija Isshak, Vicky and Eddie Azar.

4. Over 800 attended the holiday gala including “Gold Sponsor” Jason Paine, Broker of Record Buckingham Realty (Windsor) Ltd.; Alison Selkirk; Cameron Paine, Sales Representative Buckingham Realty (Windsor) Ltd., and Kelly Paine. 5. During the evening there was plenty of networking being done with real estate professionals — and those working for businesses catering to residential and commercial customers — aiming to meet as many gala guests as they could. We found Sharyn McCahon from Shardonnay Paint & Design chatting here with “Gold Sponsor” RE/MAX Preferred Realty Ltd. REALTORS Michael Drakich, Mary Hrovat, Joe Fallea and Brian Cobb. 6. Also from Buckingham Realty (Windsor) Ltd., Julianne Green, Broker and Randy Standel, Sales Representative are photographed with Anna Vozza and Bob Pedler (Broker) of Bob Pedler Real Estate Ltd. Limited and Susan Moroun, Sales Representative, Buckingham Realty (Windsor) Ltd.

Learn more about the Windsor-Essex County Association Of REALTORS by logging on to: WindsorRealEstate.com.