We hope you have been enjoying your summer!  We have been lucky to hear about many of our client's adventures this summer and look forward to hearing about more of your travels.  Our team has also had the opportunity to take time off to enjoy travelling.  Pia is currently having a trip of a lifetime with her family to Italy, Natalia celebrated her honeymoon in Cuba and Kieron and Michelle were lucky to travel to Hawaii with their family in the Spring.  Nicky, Taryn, Dan and Karen all enjoyed our beautiful cottage county in Ontario.  

This past week was dominated by the US 10 year - 2 year bond yield curve inversion.  As we have mentioned in previous blogs -  the yield curve is one measure that helps predict a recession.  This inversion spooked the markets, which led to increased volatility. We continue to monitor the other US indicators which are still in expansionary status.  We are in the late stages of the business cycle and know that a recession is in on the horizon.  It is the timing of this recession that is in question.  Historically the yield curve has been a good predictor of a recession but the equity markets typically peak many months after the inversion occurs.  This doesn't mean that we cannot do things to prepare.  For our discretionary equity models we continue to make our equity exposure more defensive.  For our fixed income investing we are focused on good quality and secure holdings along the curve.  You can read more on this topic in our Global Insight Weekly August 15, 2019

The summer has also seen headlines over the trade tensions between the US and China.  Tariffs become a tax on US businesses and consumers.  These trade worries have had an impact on the equity markets  and cause worry that a trade war could bring a recession closer.  Both sides will benefit from a resolution and we are hopeful cooler heads will prevail.  RBC Wealth Management's article Financial markets face a certain amount of uncertainty explores this topic further.

Financial literacy has been an important part of what we provide at Hayes Vickers Wealth Management.  Our goal is to ensure that your whole family, regardless of age, is well informed to make the best financial decisions for their situation.  We believe this will lead to financial success. Here are five ideas to spark age-appropriate conversations with your children about investing. Talk to your teen about money: Five foolproof conversations

Enjoy the rest of the summer!

Hayes Vickers Private Wealth - Your Wealth Management Team