The kids are back to school, the air is crisp, and the trees are starting to change colour ever so slowly.  2025 has been quite the eventful year so far and I can’t help but think the remaining few months will be more of the same.

Rate cuts have resumed this week in both Canada and the US, with both central banks lowering borrowing costs by a quarter point.  It will be interesting to see how these rate cuts affect the broader economy, especially in the US, where inflation has been stickier. We are also cautiously watching for a bond market reaction to increased government spending as it will likely have an impact on future Bank of Canada’s moves.

The headlines continue to be dominated by geopolitical conflict, lingering trade wars and most recently, violent political acts, yet markets have reached all-time highs.  There is some dissonance between economic sentiment and market performance, and we continue to maintain a higher fixed weighting as a result.  This strategy ensures that we participate in the current equity gains but provides liquidity and safety for whatever comes next. 

We have begun the process of reviewing the realized capital gains or losses for the current year in your taxable investment accounts, and assessing how this aligns with your personal tax strategy.  Where appropriate we will make every effort to offset some of the capital gain.  In any instance that further consultation is required, we will reach out to you and your accountant to discuss. We repeat this process a few times before the end of the year to get the best result possible.

Finally, as most of you know, Ina is heading off on maternity leave next week and has been actively working with the newest addition to the team, Alec Lafrance, to bring him up to speed.  Please join us in wishing Ina all the best on her maternity leave and welcoming Alec!

Livingston Wealth Management Group