This week in Canadian markets has tested investors’ ability to stay cool under pressure.
The Russian invasion of Ukraine, which now encompasses major cities Kyiv and Kharkiv, saw Russian forces firing on the Zaporizhzhia nuclear plant in Enerhodar early Friday – which produces one-fifth of Ukraine’s electricity – escalating concerns of a Chernobyl-style disaster.
The incident is the latest in a string of atrocities that have confused global markets as to the most likely path forward.
The U.S. is down 4 per cent for the month, emerging markets are down almost 8 per cent, while developed international markets are nearing 10-per-cent losses due to Europe’s reliance on Russian oil.
The TSX is relatively flat during the same timeframe thanks to its heavy exposure to financials, which have been thriving due to rising interest rates, and commodities, which have been spiking due to supply chain constraints.
The takeaway here is that a globally diversified equity portfolio has provided a smoother ride for investors during the most significant European conflict since WWII, one where major Russian firms like Gazprom and Lukoil are down more than 90 per cent year-to-date and investment in the country is quickly drying up due to a fury of international sanctions.
Rather than capitulating with the herd and selling a position when it’s down, diversified investors – who may hold cash, bonds, crypto or commodities – can afford to hold on through volatility and allow business fundamentals to dictate returns over the long term.
Though it may not feel like it at the moment, the Russia-Ukraine crisis will be temporary and markets have over a century of history to back up their eventual recovery.
According to the book, Triumph of the Optimists, global equity returns from 1900-2018 averaged 6.5 per cent above inflation. This includes the Great Depression, both World Wars, 9/11 and hundreds of other disasters that proved ineffective at stifling human industry and innovation.
As for the ongoing Covid-19 pandemic, global equities have surpassed all-time highs, even as geopolitical turmoil threatens another bear market.
Will investors find another reason to lose faith in the future and send their portfolios into a tailspin after the Russia-Ukraine conflict is resolved? The answer is yes and the key is to prepare for that eventuality before it happens. This is especially relevant to Market Herald Canada readers, who favour smaller, less proven companies still establishing a presence in their respective industries.
While over allocating to a space turns volatility into a cause for stress and sleeplessness, a resilient portfolio – based on diligent research and knowledge of market history – turns it into just another day, or perhaps a buying opportunity depending on goals and risk tolerance.
Our top stories this week take heed from the macro backdrop with a focus on commodities, financials and a disruptive technology play. Let’s dive in.
AMPD Ventures (CSE:AMPD) signs reseller agreement
AMPD Ventures has signed a definitive agreement with Zhejiang Versatile Media to market and supply the Versatile Virtual Production System worldwide.
The Versatile Virtual Production System is a production workflow solution focused on real-time, in-camera visual effects and environments.
CEO Anthony Brown sat down with Shoran Devi to discuss the news.
AMPD specializes in high-performance cloud and computing solutions for low-latency applications.
AMPD Ventures (AMPD) is up by 20 per cent over the past week trading at $0.27 per share as of 10:29 am EST.
Silver Bullet Mines (TSXV:SBMI) breaks into the historic Treasure Room
Silver Bullet Mines has entered the Treasure Room, a historical zone at its Buckeye Silver Mine near Globe, Arizona that hasn’t been mined since 1873.
The company’s on-site mill will soon begin processing material from the Treasure Room.
Director and VP Capital Markets Peter Clausi spoke with Shoran Devi about the exciting discovery.
Silver Bullet Mines (SBMI) is up by 4.55 per cent over the past week trading at $0.46 per share as of 10:19 am EST.
Hank Payments (TSXV:HANK) reports increase in Q2 revenue
Hank Payments ended its second quarter with revenue up 20 per cent YoY.
The company expects near-term growth in its automotive, mortgage and other high-margin payment channels.
President and COO Jeff Guthrie joined Dave Jackson to discuss the results.
Hank Payments is a technology company whose platform serves as a personal financial concierge.
Hank Payments (HANK) is down by 3.33 per cent over the past week trading at $0.14 per share as of 9:30 am EST.
Ayurcann Holdings (CSE:AYUR) announces NCIB
Ayurcann may acquire up to 6,085,890 common shares between March 1, 2022, and February 28, 2023.
This represents approximately 5 per cent of its issued and outstanding common shares.
CEO Igal Sudman sat down with Shoran Devi to discuss the rationale behind the buyback program.
Ayurcann is a post-harvest solution provider for Canada’s cannabis industry.
Ayurcann (AYUR) is unchanged over the past week trading at $0.165 per share as of 9:36 am EST.
Mobi724 (TSXV:MOS) to acquire Latin American B2B ecommerce leader
Mobi724 has signed an agreement to acquire Avenida Compras S.A.
Avenida+ has relationships with a number of banks and a current base of approximately 24 million payment cards.
CEO Marcel Vienneau spoke with Shoran Devi about the deal.
Mobi724 Global Solutions is a fintech company that offers real-time payment card-linked incentives.
Mobi724 (MOS) is up by 66.67 per cent over the past week trading at $0.025 per share as of 9:32 am EST.
Join us next Friday afternoon for your weekly recap of top trending stories on The Market Herald Canada.