The waves come from the wind,

and the wind comes from your inner heart

Presley-Mae Henderson

Good morning,

The intriguing nature of the ocean, the allure of waves and magnetism of surf culture seem to be running through my family. Before the end of the school year, my 8 year old daughter’s teacher called home to bring attention to the poem above and ask our permission to have it published. Thank you Presley-Mae.

Endless Summer

The first time I saw the movie Endless Summer, I was on exchange in Australia and I found myself in the small Oceanside town of Lorne, Victoria….a seemingly perfect place to be watching the timeless masterpiece for the first time. The film’s Director Bruce Brown created a film so powerful that continues to capture the imagination of every new generation. When it first played in theaters, audiences lined up to see it again and again, spellbound by its thrilling excitement and awesome photography.

The Endless Summer is considered to be the ultimate surfing adventure film, a group of surfers crossing the globe in search of the perfect wave. From the uncharted waters of West Africa, to the shark-filled seas of Australia, to the tropical paradise of Tahiti and beyond, these California surfers accomplish in a few months what most people never do in a lifetime.

Before The Endless Summer, independent surf films featured shots of Hawaii, maybe Malibu, with very little action on dry land. Brown’s flick was a crossover hit, with Hynson and August spending about half their screen time out of the water. They discovered breathtaking waves, but they also interacted with local kids in Ghana and got chased by wild animals in South Africa. They were on an epic journey, their very own journey toward discovery.

"You must live in the present, launch yourself on every wave, find your eternity in each moment.” Henry David Thoreau

In my view, The Endless Summer is ultimately a movie about finding inspiration through life and taking action to clear your own path in search of purpose and meaning.

As Endless Summer introduced surf culture to the world and changed the way surf films were produced, the premise is in line with our philosophy and approach to Wealth Management. At Henderson Wealth, we are redefining Wealth Management with the understanding that we are seekers for the perfect wave. Our approach to investment management is complemented by our understanding that taking time to understand your values, your vision and your purpose can bring clarity to your journey and an understanding to how you are spending your precious finite resources; your time, your energy and your wealth. The wind around you is not only yours to harness, it’s created by your inner purpose and our team is your guide ensure the journey ahead aligns with your vision and illuminates your path forward as you live and work towards your personal vision, enhancing your wealth and ensuring you find an inspired and expansive life.

And now, to the Markets

TSX finished slightly lower in quiet Friday trading. Most sectors lower, health care, materials and energy the big decliners with financial, staples, tech and consumer discretionary the leaders. Canadian equities notched a 0.9% weekly gain to start Q3 after TSX fell 13.8% in Q2, first meaningful quarterly decline since Q1'2020. US equities ended little changed in choppy, yet uneventful Friday trading. Major averages posted solid weekly gains with upside leadership from growth plays. Gold finished up 0.2%. WTI crude settled up 2.0%. Copper finished down 1.4%. Canadian dollar slightly higher against USD.

US June nonfarm payrolls came in +372K, well ahead of consensus, with unemployment rate unchanged at 3.6%. Bostic latest Fed official to bless another 75 bp rate hike at July FOMC meeting. Latest flow data highlighted dash to cash and biggest inflows to global bond funds in 14 weeks with Treasuries and government bonds the big beneficiaries. Reuters latest to discuss concerns that earnings could trigger another drawdown in stocks. Bloomberg reported Biden to meet with advisors on Friday to discuss cutting China tariffs, though unclear if he is ready to make a decision. PBoC continued to withdraw liquidity from financial system, raising more speculation about policy normalization. Japanese PM Abe died after being shot during a campaign event.

Canada's June employment report was mixed with a 43K loss vs consensus for a 25K gain. Unemployment rate fell 0.2 ppts to 4.9%, a new record low. Decline was driven by a drop in selfemployed with private and public sector employment holding steady. Average wages sharply higher with hours worked also up. Economists noted report will do little to ease inflation concerns as underlying data continued to point to tight labour market with more upward pressure on wages. BoC the big focus next week with July rate decision and MPR on Wednesday, followed by press conference with Governor Macklem. Analysts widely expect a 75 bp rate increase, taking benchmark rate to 2.25% (just above bottom end of 2-3% neutral range). Other items on tap include manufacturing sales on Thursday, with wholesale trade on Friday to wrap the week.

S&P futures down 0.5% this morning after US equities finished higher last week with the S&P off to its best Q3 start since 1980. Asian markets mostly weaker overnight with Hong Kong a laggard, down nearly 3% on weakness in casino and tech stocks. Japan bucked the trend, gaining more than 1% following decisive election result. European markets weaker. Treasuries firmer though 10- year yields still above 3% and curve remains inverted. Dollar index up 0.5% on broad-based strength. Gold down 0.3%. Bitcoin futures off nearly 6%. WTI crude down 1.1%. Copper off 1.4%.

Great leaders have three things - inner light, inner vision, and inner strength Sri Amit Ray

As we head into the week and continue to enjoy summer, become a seeker of your own inspired and expansive life. I don’t recommend spending time trying to watch the movie The Endless Summer, but I do implore you to consider spending time to understand where you are spending your time, your energy and your wealth. Our focus is on wealth creation and mindful living that will allow you to boundlessly search for adventure, inspiration and purpose. In your journey, be present, patient and persistent and let perseverance guide you as you work to understand your purpose and find your perfect wave created by your wind, your inner heart.

Be well & enjoy the moments

Derek