Summer Market Update

Every year around this time, parents, grandparents, and guardians prepare for Back to School season. This year is no different – except how they prepare may be very different indeed. Due to the pandemic, parents now have some difficult choices to make. Do they send their children back to school? Do they choose online learning? Should they home-school for a year?

COVID-19 Changes to the RRIF/LIF Minimum Payment

On March 18, 2020, a set of economic measures were announced as part of the Government of Canada’s Covid-19 Economic Response Plan.  That statement proposed changes to the calculation of the required minimum withdrawal for registered retirement income funds (RRIF/LIF) by 25% for 2020.

COVID-19 and Market Update

It's been a little over a decade since the World Health Organization and governments were last put to the test with a global pandemic.  We’ve reviewed research reports about the impact of COVID-19 on supply chains as well as the potential human toll.  One thing is clear: SARS and MERS are not good benchmarks for this latest outbreak, but they are logical comparisons.

The Trend is Your Friend

The old Efficient Market Hypothesis (EMH) from the 70’s stated that “prices” (for stocks etc.) reflected all available information and that this information was immediately and rationally determined and interpreted. If this were true, we would rarely see trends developing – but as you’ll see below, trends do exist. The word “interpretation” mentioned above is subject to our irrational exuberance and other human frailties.

2019 Tax Information and RRSP Contributions Notice

As we’re getting close to deadlines for RRSP contributions in 2020, I thought I would provide a quick rundown of the options available to clients who wish to contribute to their accounts, along with some additional information to simplify your financial housekeeping.

Wall Street and Europe Indexes Hit Records

Welcome to a new year!  I trust you had a wonderful holiday season with family and friends and are getting ready for a great 2020.  The world index, Wall Street and Europe indexes hit records while Trump impeachment continues, and the economy continues its growth.  Let’s get into it.

Trade War Damaging Global Demand

U.S. officials are hoping that U.S. tariffs on Chinese goods, set to take effect this coming Sunday, will be delayed. That said, the damage to global demand has already occurred, with Chinese exports shrinking for the fourth straight month, caused by the ongoing trade war which is now in it’s 17th month.

Markets are Overbought

Markets are overbought (overstretched). So, it’s normal to see some declines these last few days. Although the markets ended with only small losses today, this was after they pared their larger losses earlier in the day.

New York Fed Probability of Recession Index

The following chart shows the New York Fed Probability of Recession in the U.S. When the index line crosses above 30 (red line), we often see a U.S. recession follow between 2 to 4 months after the crossover.