January 24, 2022 – With the VIX approaching 40, we are currently going through a bout of market volatility caused by investor consternation regarding central bank monetary tightening, geopolitical conflict and growth fears due to the ongoing pandemic. 2022 has kicked off with a turbulent start.
2022 Outlook
In this wide-ranging live discussion, I discuss my 2022 outlook on a myriad of themes that are top-of-mind for investors:
- Inflation
- Interest rates
- Bonds
- Equities (domestic and international)
- Short selling
- Meme stonks
- Mergers and acquisitions
- Private equity
- SPACs
- Cryptocurrencies
- NFTs
- Key risks that should be on investors’ minds
- And more!
ETF Best Ideas
We are pleased to announce that RBC Capital Markets has added the Accelerate Arbitrage Fund (TSX: ARB) to their 2022 ETF Best Ideas Portfolio:
“ARB has a near zero beta relative to the S&P 500 and offers a quarterly payout, currently distributing a close to 3% yield. This makes it an attractive ETF that offers downside protection with greater capital return potential than your typical Fixed Income product.”
Source: RBCCMHow to Tone Down Your Risk
Larry MacDonald recently penned the article “How SPACs Can Tone Down Your Risk In These Frothy Markets” in last month’s Globe and Mail. Here is the crux of his thesis for SPAC arbitrage:
“…buying and selling pre-acquisition SPACs can be a virtually riskless way to earn positive returns in bear and bull markets. Most of the absolute returns will be singles between 3 per cent to 8 per cent a year – which may be fine for investors seeking to dial down risk and obtain diversification similar to bonds (when yields were higher). Occasionally, there will also be home runs.”
Given the significant volatility in the markets as of late, SPAC arbitrage could be a good place for investors to hideout. Read the article here.
Happy investing,
-Julian
Disclaimer: This distribution does not constitute investment, legal or tax advice. Data provided in this distribution should not be viewed as a recommendation or solicitation of an offer to buy or sell any securities or investment strategies. The information in this distribution is based on current market conditions and may fluctuate and change in the future. No representation or warranty, expressed or implied, is made on behalf of Accelerate Financial Technologies Inc. (“Accelerate”) as to the accuracy or completeness of the information contained herein. Accelerate does not accept any liability for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on all or any part of this research and any liability is expressly disclaimed. Past performance is not indicative of future results. Visit www.AccelerateShares.com for more information.
