With Thanksgiving this weekend in Canada, we hope that everyone will have a chance to spend time with friends and family. In the office this week, we have been sharing our favorite Thanksgiving recipes. One of our top choices is this recipe for sour cream mashed potatoes with chives, perhaps not the best for your waistline, but definitely delicious. As a lighter option, we thought that this sweet potato, arugula and wild rice salad with ginger dressing sounded tasty as well, as they say, everything is about balance! With it being Thanksgiving, our office will be closed on Monday October 10th. If you are looking for things to do around Ancaster this weekend, here are a few ideas.
Market Update
We expect market volatility to continue as we enter the last quarter of 2022. High inflation and rapidly rising interest rates have put pressure on most assets this year. Those issues were front and centre over the past few weeks as the messaging from central banks like the U.S. Federal Reserve was that more, rather than less, rate hikes may be on the horizon. Unsurprisingly, that led to a pickup in equity and bond market volatility, and a subsequent fall in prices. The following resources offer additional perspectives on the current market environment:
- In this article entitled "a dose of perspective" Jim Allworth discusses the factors affecting the markets, gives a much needed perspective on the markets and outlines factors that may give some upside fuel to the equity market.
- In this audio commentary: The Fed has spoken… now what? Janet Engels and Tylar Lunke discuss how the Fed’s recent actions surprised markets and set off more volatility, before talking about what they think is in store for investors and the sort of action investors should take.
Another, albeit less talked about asset class, has also seen extensive volatility as of late: currencies. The U.S. dollar has been riding high this year, driven by a few factors. More specifically, a general flight to safety with risk aversion driving many investors to seek the liquidity and safety typically offered by the U.S. dollar. Moreover, an aggressive central bank compared to others has provided a relative yield advantage in the U.S., thereby attracting some capital. Lastly, while the U.S. economy is by no means immune to the inflation dynamics, growth headwinds, and energy security issues that have arisen, it is seen as more resilient, with the ability to navigate through the challenges that lie ahead. Chief Economist Eric Lascelles reviews the latest market moves across the globe in this video. As investors are seeking a safe-haven in the U.S. dollar, it is resulting in its strength. In particular, the Japanese yen, British pound and Euro continues have been particularly weak.
As the year begins to wind down another wrinkle is about to be added to the mix - the U.S. midterm elections. We’re only about a month out from the midterms, and it’s worthwhile to consider whether they will be a pivot point for equities. Kelly Bogdanova and Tylar Lunke discuss the historical performance surrounding such elections in this audio recording and what that may be - and may not be - signaling for this year and next. For additional reading, please click here.
Financial Wellness
October is Cyber Security Awareness month. As cybercrime continues to rise in Canada, being cyber safe, is a matter of knowing what to do to keep hackers and scammers out of your system and accounts. 4 Steps to WIFI Safety, shares smart habits to get into when using public WIFI. Although some public WIFI is secure, it is not always. Knowing how to protect yourself online is the best defense against cyber criminals and their tactics. Being vigilant about your online security is key to guarding against cyber criminals. The Vault: A Cyber Safety Playbook is a guide developed by RBC to help protect and to provide our clients with the knowledge needed to be cyber aware. If you have any questions or concerns please contact us.
Wishing everyone a Happy and Healthy Thanksgiving weekend!