“When we have a clear sense of where we're going, we are flexible in how we get there.” Simon Sinek

Good morning,

I trust everyone enjoyed the weekend and much was accomplished on everyone’s “let’s get ready for summer to-do list”. Yes, I power washed my driveway….and yes, that was on my to-do list.

As we head into the week, I thought I’d share some thoughts around the importance of intension as it relates to deriving meaning from our actions and ensuring that we are living life with purpose, on purpose.

At Henderson Wealth, our belief is that understanding your Vision for your life, your family and your business is the bedrock that enables empowerment through personal growth, family harmony and prosperous wealth creation. When you have a defined Vision it will not only help you overcome obstacles and enable you to navigate the changes and complexities of life and business, but a clearly defined and understood Vision will provide you continuity in your planning and create a legacy that stands the test of time.

If we all take time to define our Vision on the personal front, for our families and in our business….this Vision will lead our intension and ensure you discover and live your purpose.

“If you can’t figure out your purpose, figure out your passion. For your passion will lead you right into your purpose.” Bishop T.D. Jakes

And now….to the markets

Overall, markets were unchanged or modestly higher over the past week. Some of the inflationfueled concerns subsided in recent days, helping to revive the high growth parts of the market that have bared the brunt of the latest bouts of pressure.

At the close of last week, the TSX was higher in Friday afternoon trading near record high. Most sectors higher led by health care with utilities the laggard. US equities mostly higher in very quiet Friday trading ahead of long holiday weekend. Major indices all posted weekly gains as S&P 500 broke two-straight weekly declines and Nasdaq posted second-straight weekly gain after four-straight weeks of declines. Gold finished up 0.4% posted fourth-straight weekly gain. Bitcoin futures down 5.3%, but off worst levels. WTI crude settled down 0.8%, though still ended up over 4% on the week. Canadian dollar little changed against USD.

Coronavirus update

Canada experienced one of its largest declines in new daily infections this past week. The country’s 7-day average rate of new daily infections stands at 5000 versus 6700 from the week ago period. Nearly all regions across the country experienced meaningful improvement. For example, Alberta’s average rate of new daily infections fell by 40% in the past week alone. Manitoba remains the one province that has yet to show significant declines, though its figures did not increase over the past week which could mark an important inflection point for the province going forward. Many provinces are now preparing to ease restrictions in the weeks to come, which comes as a welcome relief to many and should bolster the economic tailwinds going forward.

Canada

Here at home last week, housing prices and household indebtedness were the main areas of focus in the Bank of Canada’s annual Financial System Review. With more Canadians working from home during the pandemic, demand for suburban homes quickly outpaced supply, causing prices to rise nationwide. Although the central bank anticipates these price increases will prove temporary as supply constraints begin to ease, it noted signs of exuberance are beginning to emerge in certain housing markets, namely the Greater Toronto Area, Montreal, and Ottawa. The report also gave special attention to the increase in mortgage debt driven by the rising number of Canadian households that required a large mortgage relative to their income; this increase offset the broad decline in consumer debt, leaving the average Canadian more indebted than a year ago. These factors, either individually or in combination, could have a destabilizing effect on the economy by leaving household consumption vulnerable to potential economic shocks. Other key vulnerabilities highlighted in this year’s report included market liquidity, climate change, the viability of businesses relying on government support, cyberattacks, and the rapid evolution of crypto assets.

USA

We continue to watch with fascination as the 10-year Treasury bond yield continued to decline this week, reaching 1.6%, its lowest closing level in over a month. Bond prices were pushed higher, in part, by economic data disappointments, including elevated continuing jobless claims and indications that the sharp rally in home prices has begun to curtail activity, as expectations may have begun to outrun reality in several key areas. A trio of Fed speakers also helped fixed income markets by reiterating that policy makers continue to view recent inflation—most notably April’s 4.2% year-over-year increase in the Consumer Price Index—as driven by largely transitory factors. In our view, the combination of lagging employment numbers and a discounting of near-term inflation data suggests that even if the Fed begins to talk about tapering in an upcoming meeting, an actual reduction in the pace of asset purchases is unlikely before 2022.

The U.S. dollar is approaching a multiyear low against a basket of developed-market currencies. Rising interest rates and strengthening growth prospects in other G10 economies have reduced the relative attractiveness of the greenback. With the Fed emphasizing the need for accommodative monetary policy, relative interest rates may not provide much boost to the dollar in the near term. Continued U.S. currency weakness would tend to drive up commodity and import prices, potentially adding to near-term inflation. As always, there continues to be opportunity amid uncertainty.

That’s all for now, it should be an interesting week of news as we continue to see progress on the COVID front. Go Leafs Go!

What better week than this one, to find time to sit back and create your Vision statement. Although creating a Vision for your life might seem like a frivolous, fantastical waste of time, but it’s not: creating a compelling vision of the life you want is actually one of the most effective strategies for achieving your life of purpose.

“To live is the rarest thing in the world. Most people just exist.” Oscar Wilde

Be well & enjoy the moments

Derek