“To leave the world a bit better, whether by a healthy child, a garden patch, or a redeemed social condition; to know that even one life has breathed easier because you have lived - that is to have succeeded” Ralph Waldo Emerson

Good morning,

I trust everyone enjoyed some downtime this weekend!

A quick little tax time note: now that we are into tax season, your tax packages should be arriving – if you need us to send you via email, just let us know. 

The Henderson family had some fun on Friday, my daughter Dilynn celebrating her 6th birthday!! She was certainly showered with gifts on her big day…..funny to think that her favorite gifts were a bottle of sprite and a bag of salt and vinegar chips. Sometimes it’s the smallest of gifts that have the most impact.

On the subject of giving, it’s been a wonderful year to hear the intent to which everyone is approaching the theme of philanthropy, with compassion and kindness. It was my hope that this year of challenge would bring out compassion and it’s evident that the notion of giving back and showing our gratitude is top of mind for all of us this year.

“If you knew what I know about the power of giving, you would not let a single meal pass without sharing it in some way.” Buddha

It can be difficult to know where to start when you’d like to see change beyond your immediate environment or circle, but small steps can really make a difference. I thought I’d highlight three encouraging points that can help start the process, a few things to keep in mind as you explore what philanthropy means you and your family.

Find your niche: To begin thinking about this, consider an area about which you feel passionate which can be a powerful way to focus energies and attention

Take small steps: You do not have to solve hunger, the climate crisis to deliver world peace, being intentional with the ways you give back, at a slow and steady pace will enable you to make change with both impact and passion.

Measure your progress: One you have decided where you are going to focus your philanthropic energy, make sure you make a note of the energy you are giving on a weekly, monthly and annually basis. This can help you realize that all of what you give, all of your thoughtful actions lead to big change.

Finding your focus and exploring areas that provoke your strongest emotions can be a way to concentrate where and how you’d like to make changes.

“If you think you are too small to make a different, try sleeping with a mosquito” Dalai Lama

And now, to the markets……

The upward pressure on bond yields that had been so notable of late was less pronounced over the past week, driven by a confluence of factors that we explain below. Meanwhile, trends on the virus front have deteriorated. The next wave of the pandemic may have less meaningful investment implications this time around given the rollout of vaccines, but it suggests the world is not quite out of the woods just yet.

Coronavirus Update

Frustratingly, the rate of new infections is increasing once again in some countries. In Canada, the 7-day average rate of new daily infections stands at over 3000 for the first time in a month. The country’s largest province, Ontario, is mostly responsible as it has experienced a noticeable uptick in cases, driven largely by new variants of the virus. But, Manitoba has also seen an increase. Most other provinces have continued to see declines.

Meanwhile, parts of Europe are struggling to contain a third wave of the virus that is already well underway. Most notable has been Eastern Europe, with the Czech Republic, Slovakia, Hungary, and Poland all experiencing some of the largest infection rates in months. Even Italy and France are dealing with rising figures. Elsewhere, Turkey, India, and Brazil are all examples of other countries around the world that are contending with rising infection rates.

The U.S. continues to experience declines. However, the rate of improvement has slowed, and a few states are now seeing rising trends.

Bond yields face some resistance… for now

Global bond yields faced a bit of resistance this past week, which provided some support to global equity markets and led some like the Canadian stock market to reach a new high for the year.

There were a number of factors at play that helped limit the upward pressure on bond yields. First, the inflation readings out of the U.S. for the month of February were relatively tame, which served to remind investors that the economy is still in the early stages of recovering and that any signs of pricing pressures have yet to materialize.

Secondly, the European Central Bank decided to take action to offset the recent move higher in bond yields by committing to buy government bonds at a faster clip, hoping to drive bond yields lower as a result. This adds to a similar decision undertaken by the Reserve Bank of Australia the week before. It underscores the notion that monetary authorities remain focused on ensuring that financing conditions – such as borrowing costs for businesses and consumers – remain very accommodative.

Lastly, bond markets were supported by a sizeable debt auction by the U.S. government that went reasonably well. Many governments are issuing increasing amounts of debt to fund the massive amounts of aid and stimulus that have been announced since the onset of the pandemic. This includes the $1.9 trillion stimulus package signed into law by the U.S. administration in recent days. The bond auction resulted in reasonably healthy demand from investors this past week, including large institutions such as pension funds for example.

Ultimately, markets were reassured to some extent that inflation is not yet an issue, central banks remain proactive, willing and able to intervene to counteract forces that could jeopardize an economic recovery, and there remains sufficient investor demand to absorb a growing supply of low yielding government bonds, despite inflation concerns.

We still expect markets to be tested in the months to come as inflation readings should rise as we lap the spring period from a year ago. The potential to overshoot inflation expectations in the near-term remains a possibility given the high amount of savings, pent-up demand, and new rounds of stimulus. Over the longer-term, we are less convinced that inflationary forces will prevail and we are viewing the sustained uncertainty as an opportunity for us to take advantage of volatility.

As you head into the week, give some thought as to what is important to you, your family and the legacy you want to leave behind.

“We make a living by what we get, but we make a life by what we give.” Winston Churchill

Be well & enjoy the moments

Derek