“When the power of love overcomes the love of power the world will know peace” Jimi Hendrix

Good morning,

What an amazing sunny day yesterday here in Ontario, a small glimpse of spring that is just around the corner!

That said, before we can get into the new season, we need to endure annual tax time which I’m sure everyone is preparing for at the moment. As you start to receive information in the mail for this year’s tax season, do let us know if any documents are missing or if you need any assistance, we are here to help.

Over the weekend and into this morning, all eyes continue to be squarely focused on the military conflict in the Ukraine. Not surprisingly, volatility remains elevated given the uncertainty in the wake of Russia’s invasion. Yet, many equity markets outside of Europe are actually higher than where they stood prior to the recent escalation. This may seem unusual but it compares similarly to other major military conflicts through history where global markets priced in the risks before the start of a war, only to witness some price stabilization shortly after the fighting began. Nevertheless, the situation is fluid and it is important to remain vigilant.

As we head into the week, S&P futures are down 1.6%, just off worst levels overnight, looking to be adding to last week's decline in the major US indices. Tech continuing its selloff as well, with Nasdaq 100 futures down 1.7%, this morning following a broad weakness across Asian and European markets. Treasuries mixed with a touch of curve steepening and the Dollar is notably stronger on the euro cross and better vs yen and sterling as well. Gold up 1.8% after its 4%+ run last week and Bitcoin futures down 3.4%. Oil hit $130 briefly, with WTI crude continuing its surge, up 6.1% amid latest Ukraine pressures.

Elevated inflation was a headwind entering the year but was expected to moderate to some extent as the year wore on. But, any relief is now in jeopardy because of the war and its impact on supply chains, and in particular the commodity complex. Russia and the Ukraine are important producers of a variety of commodities. Crude oil, natural gas, coal, wheat, corn, sunflower oil, palladium, nickel and aluminum are just some of the commodities that have moved higher of late and year-to-date. Barring any quick resolution to the situation, these prices may remain elevated and keep inflation higher for longer.

The new state of global affairs may lead central banks to approach their rate hiking campaigns more gradually than originally planned. A slower pace would undoubtedly be welcomed by investors as long as the risks of recession remain relatively limited. For now, that continues to be our base case scenario.

“In all things we should try to make ourselves be as grateful as possible. For gratitude is a good thing for ourselves, in a manner in which justice, commonly held to belong to others, is not. Gratitude pays itself back in large measure” Seneca

It’s difficult to wade through the uncertainty of environment of today, or imagine what the people of Ukraine are living through at the moment. What we can do is provide support in ways that we are able, and also think of all the things that we can be grateful for today….whether it be your health, your family, your fortitude or how much you have grown along your journey thus far. Gratitude is infectious, it’s positively radiant and it’s an excellent time to put it into our internal and external practice.

As we head into the week, I thought I’d share a list that can help us focus our efforts and practice of continuous improvement, as we think about how we define wealth, how we delineate our goals and how we express our gratitude in our pursuit of happiness.

To improve your mood | exercise

To think more clearly | meditate

To understand the world | read

To understand yourself | write

To help others | help yourself

To learn faster | have fun

“Happiness cannot be travelled to, owned, earned, worn, or consumed. Happiness is the spiritual experience of living every minute with love, grace, and gratitude.” Denis Waitley

Be well & enjoy the moments

Derek