“I'm strong. I'm prepared.”- Gordon Lightfoot

Good morning,

What an entertaining Leaf game last night…sorry for the tough loss Leaf Nation. I know several you were at the game in Florida last night, you picked a great game to attend. For us that were watching the game from our living rooms, what better way to spend a Sunday evening, a nice cap to a wonderful weekend.

I took full advantage of the nice weather this weekend, spending time doing a few activities, small day to day chores that provide me complete fulfilment, tasks that some would take for granted. I know there are many of you would understand the satisfaction of listening to the always enlightening Berkshire AGM, or the simple act of taking a moment to read. Many of you appreciate the joy that cutting the green grass can provide, finding pride in the perfect lawn edge, or power washing patio stones in preparation for the summer season. We celebrated Friday around our campfire with our kids and friends, and I woke up Sunday to cook breakfast outside, satisfying my longing for the smell of bacon outdoors, while nostalgically listing in tribute to Lightfoot songs. It’s the little things in life, moments that we can recognize and appreciate that the ordinary can be extraordinary.

Your vision will become clear only when you can look into your own heart. Who looks outside, dreams; who looks inside, awakes

Carl Jung

The Ordinary is Extraordinary

When you take nothing for granted, life is abundant.

The principle The Ordinary Is Extraordinary is at once simple and profound. It’s an invitation to walk through your days taking nothing for granted, with conscious acknowledgment of the amazing things and people that make up your life. As a practice, it’s an ambitious one. When you grow accustomed to the details of your life, it’s easy to take them for granted even when that’s not your intent.

We can all name extraordinary people who have touched us…a teacher who made us feel seen, a relative who helped us believe in our dreams, a friend who created a circle of acceptance wide enough for all. Those we deem extraordinary can’t be narrowed to a single profile, but their lives are likely to include five vital ingredients:

• A focus on the things that matter
• They embrace kindness
• They possess a willingness to be seen as imperfect
• They have an ability to connect
• They understand joyfulness

“The fundamental algorithm of life – repeat what works”

Charlie Munger

Wisdom • Wealth • Wellness • Wellbeing

Our philosophy at Henderson Wealth is focused on Four Cornerstones. We understand that we begin to experience the most powerful advantage of wealth when we discover the ability to think of things beyond money. “True happiness,” Seneca said, “is to enjoy the present, without anxious dependence upon the future.” Happiness only exists in the present moment. It only exists in the here and now and those of us who are willing to reach for the extraordinary understand that criticism and rejection are the price we sometimes pay for trying. Willingness to be vulnerable and mindful gives us the freedom to pursue our extraordinary dreams. By extension, this mindset of wisdom, wealth, wellness and wellbeing creates a clear focus, so we can feel inspired and pay attention to those ordinary things that are, in fact, extraordinary.

“To be yourself in a world that is constantly trying to make you something else is the greatest accomplishment”

Ralph Waldo Emerson

And now, to the Markets

Global markets have been relatively calm and remain near their highs for the year. Despite the quiet market action, it’s been a rather busy period with developments that are worthy of updates. The first quarter earnings season has come and is nearly gone. Overall, it is looking as though the rate of earnings growth has declined year over year, for the second consecutive quarter. Clearly, that’s not great news. But, relative to low expectations, the results can be characterized as being “not that bad”. Moreover, the declines have been modest and come after a few years of very strong growth. Importantly, the commentary from management teams has been reasonably balanced, with some highlighting softness among lower-income households and in areas like spending on durable goods, and others pointing to strength and resilience in some industrial end markets and spending on travel and casual dining for example. Lastly, companies suggested inflationary pressures remain but are also moderating in some cases, with supply chain improvements a notable tailwind. Many companies acknowledged the uncertainty that lies ahead, but few flashed any notable warning flags.

The U.S. Federal Reserve and European Central Bank both raised interest rates by 0.25% over the past week. Powell and his crew indicated there is “more ground to cover”, implying there may be additional rate increases coming over the next few months. In contrast, the U.S. Federal Reserve signaled it may be done with its rate hikes as it altered the language in its formal statement in what Chairman Jerome Powell indicated was a “meaningful change”. It indicated it will take into consideration the cumulative action taken so far and the “lags” with which rate hikes tend to impact growth and inflation. The debate has already shifted to whether interest rates will stay where they are for the foreseeable future, or whether they could be lower by the end of the year, as some market participants expect. We believe it remains premature to think about lower rates given the stickiness of inflation.

Overall, these developments were incrementally positive. Corporate earnings haven’t been too bad, strains in the regional banking sector have been well absorbed by markets, and interest rates appear to be peaking which marks an important inflection point. Nevertheless, like the Fed, and the Bank of Canada which has officially paused its rate tightening campaign, we expect the significant rate hikes from the past year to eventually weigh on economic activity and corporate earnings in a bigger way, we are enthusiastically taking advantage of both the equity and fixed income asset classes in a meaningful way, including the yields on cash and cash equivalents the environment is offering at the moment.

Live your live as though your every act were to become a universal law

Immanuel Kant

There is a Stoic concept of Memento Mori that highlights the importance of being intentional with our wisdom, our wealth, our wellness, and our wellbeing. In Meditations, Marcus Aurelius writes “You could leave life right now. Let that determine what you do and say and think.” I was given a book last week by Author Ryan Holiday, accompanied by a letter that served to remind me, as Ryan does, there is power in understanding just how fragile and ephemeral life is. In an interview shortly after the death of the musician David Crosby, Crosby’s bandmate Graham Nash talked about the falling out they never got to resolve. “He had sent me a voicemail saying that he wanted to talk to apologize,” Nash said. “I emailed him back and said, ‘Okay, call me at 11 o’clock tomorrow your time, which is 2 o’clock on the East Coast.’ He never called, and then he was gone.”

As we do with our financial planning, in wealth planning and all aspects of our life, we need to strategize and prioritize all of the exciting things we want to accomplish and the people that we want to enjoy our journey with. As we head into the week, give some thought in to how you can turn your moments and your time from ordinary to extraordinary. Take time to reflect on your purpose and your path, ensure your compass is leading you into the right direction, and you are equipped for the terrain ahead.

No one knows how much time they have, so let’s use the time we have, before we lose the time we’re never guaranteed

As the late Gordon Lightfoot reminds us, be prepared and be strong.

“Does anyone know where the love of God goes when the waves turn minutes to hours”

Gordon Lightfoot

Be well and enjoy the moments