Covid-19 Update
August 20, 2020

Canadians have done a pretty good job of exercising caution and discipline resulting in a significant reduction in the number of new Covid-19 cases being reported on a daily basis both here in Toronto and across Canada. In contrast to what has happened in the U.S. this shows that caution in the reopening of business and social activity has been prudent. In order to keep the progress that has been made, it remains essential for us to continue the program of cautious and gradual steps in returning to a business as usual state. Some of the big banks on Bay Street have even gone as far as announcing that they will not redomicile employees within the downtown Toronto core head offices until next year at the earliest.

Mackie Research Capital continues to conduct business subject to the constraints of physical distancing. The office towers which house our head office in Toronto and most of our branches continue to remain closed to the public. The majority of our staff are still working from home as physical distancing protocols in elevators and within our office space limit the number of employees who can be present in our offices. Our reception areas are still locked and visitors are not permitted. Our cage operations continue to receive and deliver securities and funds electronically and by mail and courier. Our trading operations continue to operate as usual.

Financial markets have continued to perform quite well, indicating an attitude of confidence in our economic recovery. At this time the S&P 500 has fully recovered from the March 23 low that it hit early in the Pandemic, and is at an all-time high level. The Dow and TSE indices have also had strong increases from the March 23 low – they have not quite reached the all-time highs of February 2020 but both indices are above their levels a year ago. We are also experiencing a positive resurgence in financing activity with many issuers raising new equity capital. In particular we are seeing renewed interest in shares of mining companies, after a multi-year drought. This should come as no surprise with gold at over $US 1,900 per ounce.

We will update this message as changes occur. In the meantime we will continue to provide the highest level of service and look forward to each step towards resuming life as usual.

Geoff Whitlam