On occasion there is so much to say that we end up saying nothing…this is one of those occasions. War, inflation, rising interest rates, and Omicron are all reasons to see equity markets take a pause after considerable outperformance in 2021. Relative to our international friends, Canada has held up well. This is largely due to the narrower set of industries that make up our Toronto Stock Exchange, which is heavily weighted to Financials, Telcos and Energy. Similarly, the US and International markets have experienced greater volatility as their markets reflect the fortunes of fast growing tech companies that suffer in the face of higher borrowing costs. In spite of these headwinds, the world’s economies continue to recover from two years of COVID shutdowns with our largest companies posting impressive results and declaring long awaited dividend increases.

 

We cannot predict the outcome of the current geopolitical crisis or the extent of interest rate increases but we can protect our portfolios by prudently following our investment policies. Much of the last six months has focused on shifting to defensive positions, both equity and fixed income, in the face of rising interest rates. We will continue to focus on this imperative as we review accounts and ensure that the income required to fund your financial goals is secure and available.

 

Should you experience any unease, please reach out and we would be happy to review your specific circumstances. In the meantime, Jenny is filling the calendar with our regular review schedule. Given the update to COVID safety protocols, we will now be offering in-person meetings along with Zoom or telephone calls. Isabel is available for any questions regarding the 2021 tax packages – please remember that some companies take a little longer to issue the T5’s so it is a good idea to hold off completing your return until all is received.

 

Regards,

 

Livingston Wealth Management Group