Opening Notes

It has been too long since we posted an updated blog entry.  With summer officially over effective yesterday, it gave me a push to get our summer edition completed.  As mentioned in previous editions, our household is going through significant transition as two of our kids are now in University and out of the house.  Our son, Lucan, is in his third year at Guelph, and our daughter, Gemma, is in her first year at Brescia University College (affiliated with Western University - my alma mater).  To complete the family update, our youngest son, Jaren, is now in grade 9 at Northern Collegiate and actually enjoying the extra attention he is receiving as the only child at home.  Before sending everyone out the door to different cities in September, we did manage to get the entire family away in July to a cabin in eastern Ontario, about an hour west of Ottawa.  This was a different experience for us.  The cabin was very rustic and well off the beaten path, but apparently we all liked it, as we have booked again for next year.  The cover picture for this blog entry was taken from the Sea Doo in Big Gull Lake...a truly beautiful area.

As I'm sure most of you know all too well, the investment markets have not been good this year, including both fixed income and stock markets.  I'm sure I've covered this in a previous post this year, but when short-term interest rates are moved up aggressively by central banks like the Bank of Canada and the Federal Reserve, there isn't very many things that do well.  Bond prices go down when interest rates/bond yields go up, even though they are always guaranteed by the issuer of the bond to mature at par or $100 at maturity.  This hopefully provides some peace of mind that your fixed income portfolio should recover in price as maturity dates draw closer.  Stock markets are equally volatile in times of rising interest rates as companies don't like to see their borrowing costs, and that of their customers, pulling down on profit expectations.  The big move upward in interest rates has happened to combat a persistent increase in the rate of inflation.  Early indicators are already revealing that inflation is slowing materially, but lagging indicators, that the central banks place greater reliance on, have yet to reflect this reality sufficiently to halt their upward bias on rates.  We are hopeful that upcoming CPI and employment reports will confirm the signs given by leading indicators and help to ease this upward bias by central banks.  Both fixed income and equity markets will respond well to this when it happens.  In the meantime, volatility will likely stay with us until the central banks change their course on these supersized rate increases.

Craig, Michelle and myself are always here for you.  Please reach out if there is anything that you need.  Enjoy the end of summer and start to the Fall season!

Trend & Cycle - Market Roadmap - Weekly technical research report available (emailed weekly)

Many of you will have zero interest in receiving this weekly report in your email inbox:)  Others, however, may find it very interesting.  Rob Sluymer, our Technical Strategist on the Portfolio Advisory Group, prepares this client-friendly, technical research report each week.  I participate in his weekly conference calls each Tuesday and have grown to appreciate his technical perspective on what is happening in the investment markets.  If you would like to try receiving this weekly email, please contact Michelle and ask to be placed on our email distribution list for Rob's weekly report.  Here is a copy of this week's version.  Follow this link to be connected (press the back button on the browser to return to the newsletter):  Trend & Cycle Market Roadmap

First Home Savings Account (FHSA) *New*

First introduced in the Federal Budget in 2022, the government has created a new registered account to help individuals save up to $40,000 on a tax-free basis to purchase their first home.  The FHSA is a mix between a RRSP and a TFSA.  Contributions are tax-deductible like an RRSP contribution.  Like a TFSA, withdrawals made to purchase a first home (including income earned) will not be taxable.  We are hoping to have these available sometime in 2023.  Follow this link to be connected (press the back button on the browser to return to the newsletter):  First Home Savings Account (FHSA)

Income Taxes at Death - The two certainties of life collide

An individual's obligation to pay income tax and file an income tax return(s) continues in the year of death.  Generally taken on by the legal representative, this article provides some information that may assist in fulfilling these important requirements.  Follow this link to be connected (press the back button on the browser to return to the newsletter):  Income Taxes at Death