As the year winds to a close, the team and I are busy preparing for the end of 2024. The office is decorated (thanks to Isabel and Ina) the vacations are planned, and the year-end tax preparation under Suzanne’s watchful eye, is well underway.

As always, the end of the year brings reflection. We are reminded of those we lost and look forward to the new relationships we have made. We want to express a heartfelt thank you to all of you, our clients, for your ongoing support. It is an honour and a privilege to provide our wealth management services to you and your families. We are eternally grateful.

It was a year of mixed blessings. Despite numerous geopolitical crises, a perplexing U.S. Election and ongoing political uncertainty at home, the financial markets rewarded us with lower interest rates and solid equity market returns. Compounding those returns with last years’ outperformance, we find ourselves well prepared for any possible volatility that 2025 might bring.

The rising interest rate environment of 2023 enabled us to reposition portfolios to capture higher yields in bonds and preferred shares. As rates peaked in early 2024 and ultimately began moving down, those same bonds and preferred shares began increasing in price and offering some capital gain along with the annual interest/dividend payment. Interest rate cycles are typically long in length and those opportunities are rare, but the benefit will be felt over the next few years. Another source of return came in the unfortunate occurrence of a declining Canadian dollar. Over the year, the CAD lost 5 cents to the USD which shows up as capital gain in portfolios measured in CAD. Any reversal in the direction of the CAD will ultimately take away from future capital gains. We consider this regularly and it prompts us to constantly trim back our US equity holdings as a hedge against a possibly strengthening CAD. We expect that activity to continue in 2025. 

Lastly, to accommodate some time off at Christmas we will have reduced coverage over the week of December 23rd. Both Michael and Ina will be available by email or phone over the Christmas period, but we will not have in person office meetings unless it is an emergency. It would be appreciated if any drop offs or document requests are completed by December 20th. 

Our warmest wishes for the holidays,

 

Joanne, Michael, Suzanne, Isabel and Ina                                                                                                   

Livingston Wealth Management Group