Outlook

As 2023 draws to a close, the world of financial planning in Canada is evolving with the introduction of new acronyms to the ever-growing alphabet soup of government programs. In this month’s newsletter, David sheds some light on what's new and what's standing the test of time.

Why We Hate The Stock Market, And Why It Is So Necessary Every now and then we encounter a potential client who wants to open an investment account but doesn’t want to put money into the stock market. “It’s just [...]

Ignore the Merchants of Fear, and Count Our Many Blessings Back in the days when everyone got their news from newspapers and television, the wisdom in the media industry was “if it bleeds, it leads”. In other words, bad news [...]

In this newsletter David draws parallels between the winding journey of a road trip and the unpredictable nature of life and financial markets. He discusses recent economic news, including a minor GDP dip in Canada's second quarter, and emphasize that recessions are a natural part of the economic cycle. David advises against worrying about a potential recession and highlights the importance of long-term investing, encouraging a patient and steady approach to investing, emphasizing the potential benefits of market downturns in the long run.

This months newsletter delves into the issue of productivity, growth, and investing in Canada. David highlights Canada's productivity challenges and its struggle to keep up with other wealthy nations, resulting in lower per capita income. He discusses possible factors contributing to this situation, including low business investment, regulatory obstacles, and high taxes. He also compares Canada's technological progress to that of the United States, where companies like the "Magnificent Seven" have experienced significant growth and wealth creation. While Canada certainly has its strengths and investment opportunities, David suggests that, right now, the U.S. is where the money is.

In our newsletter this month we have a double shot from David to supplement your summer reading. In the first article, he discusses the significance of the recent milestone of 40 million people now in Canada and the importance of continued immigration to our long-term prosperity. The bonus content outlines why the summer economic recession has not happened, concluding with his best advice to clients.

The good news – on average, we are living longer and healthier lives. On the flip side – we need our savings to last as long as we do meaning we may need more. How long we live is one of the key determinants of how much savings are required to maintain our lifestyle in retirement but there are others that are equally important. In this month’s newsletter, David outlines these and explains how we work with our clients to increase the likelihood of achieving their goals.

Many of our clients and, for that matter, many people in general, are asking important questions like – Will there be a recession or, when will interest rates start to come down? These are important and the answers will certainly be important in determining how well an investment portfolio will do in 2023, however, the answers are highly uncertain. In this month’s newsletter, David argues that there is another question that is more important in terms of managing your investments can be answered with a higher degree of certainty.

Like you, I am carrying nicely printed pieces of plastic in my wallet. The green ones are “worth” $20.  Well, that is to say, you can exchange them for $20 of other stuff; and you can pay your taxes with them.  The value of the plastic, as plastic, is of course pretty much zero.  It was not always this way with money. David explains these in this month’s newsletter.