I’m having trouble buying Christmas gifts.

 

The problem isn’t that I don’t know what I want to buy. The problem is that what I want to buy isn’t available – or is available only for a few minutes on Amazon before someone snaps it up. It’s all due to the global supply chain shortage, which Global News summed up nicely with this story: “Why everything you want is out of stock or more expensive.”

 

I will sum it up by saying that supply chain shortages are pushing up inflation, because short supplies allow sellers to raise prices. That said, I still believe that inflation is not here to stay. That it is transitory, in other words.

 

Nevertheless, it is a fact right now, one we are well-positioned against and even poised to capitalize on. For example, we are invested in Canadian banks, because they fit our investment strategy criteria, which include owning companies that have strong balance sheets, business models we understand, are predominantly in regulated industries and, especially pertinent in this case, issue dividends.

 

Why dividends? Because when inflation goes up, banks’ earnings are going to go up, meaning dividends will go up. That makes the Canadian banks a great hedge against inflation, as are the insurance companies we have in our portfolios.

 

We are getting a similar advantage from those companies we own that are in industries related to oil production. Notice that I did not say oil companies – because we avoid owning them. They are price takers, not makers, meaning they have no control over what the price of their product is going to be in the future – because the market decides. As a result, they do not know what earnings are going to be, and thus they are not in a good position to foresee what their stock price and/or dividends are going to be. In other words, oil companies, as far as we are concerned, present an unacceptable level of risk.

 

Companies related to the oil business, however, can give us some participation in rising oil prices without taking on that risk. We own Enbridge and TC Energy, for example, both of which are oil pipeline companies. Enbridge’s dividend this year is 6.3%. TC Energy’s dividend is 5.3%, and its stock price is up 31%. All told, these strong performances again allow us not just to protect against, but to actually capitalize on, rising prices.

 

We received terrific feedback from clients of ours who attended a September 29th online presentation on estate planning, delivered by Leanne Kaufmann, President & CEO of RBC Royal Trust.

 

If you didn’t happen to tune in – or if you did, and you want to revisit some of the content – here is a link at which the entire presentation is yours to watch. You just have to enter the password: RBCds2021

 

Because we work with multiple generations of our client families, estate planning is an especially important subject. It’s something that David Chilton, The Wealthy Barber, certainly believes. In a special partnership with RBC, David has been blogging about estate planning, posting alongside editions of Marche Monthly on our main blog page, here. Some are videos, some are written pieces – and all are worth checking out.

 

Given the heightened attention paid to estate planning by our clients amid the pandemic, our Will and Estate consultant, Alleen Sakarian, has never been busier. A lawyer who holds the highly advanced TEP (Trust and Estate Practitioner) designation, Alleen works with clients in reviewing their existing estate plan, which may include a review of their wills, and offers guidance, as required, to minimize tax and maximize administration efficiency.

 

Is it time for a (complimentary) consultation with Alleen, after which you will receive a customized report and recommendations? There are many events that should trigger a meeting. It could be a marriage in the family or a new grandchild, and the renewed questions around beneficiaries and executors that may arise. Perhaps there are shareholder agreements or business succession issues to attend to.

 

Cottage succession is another common issue, one that can lead to heartbreak if not handled in advance and with all the required sensitivity to family dynamics – something Alleen, as a married mother of two, is highly attuned to.

 

Born, raised and still living in Toronto, Alleen worked in private practice after graduating from law school in 2008. At RBC, she takes great pride in the important work of helping clients preserve their wealth, organize their affairs and ensure that their wishes are brought to life. Outside of work, she serves on the board of the Armenian Community Centre of Toronto and describes herself as a part-time Uber driver – to her children, aged seven and 10, who dance and play soccer, respectively.

 

If you would like to book a consultation with Alleen, please let us know.

 

Alleen is an important part of our team here at RBC, where our clients enjoy an unparalleled depth and breadth of expertise across all wealth management disciplines.

 

 

 

In January, my family and I are supposed to visit Turks and Caicos.

 

This is a trip that has been canceled three times already, so fingers crossed.

 

Thinking back to 2020, things are now at least somewhat better for most of us (as a suggestion of how far we’ve come, last week the Raptors played their first home game in 600 days). But I think there is still the need, for all of us, to have a winter strategy. This is an idea we first shared in the September, October and November 2020 editions of this blog.

 

On those occasions, we posted some ideas and links to stories on how to enjoy what we can of the winter season, and emerge healthy and happy in the spring. Now would be a great time to revisit those posts – and, new for 2021, here is a selection of stories that may also be of service:

 

 

Here is our mission at Marche Wealth Management: To uncomplicate your life by helping you navigate not just the markets, but also your personal life events. So there is a financial side to it, and a personal side to it.

 

They are two sides that can often be interrelated. So let me assure you: our portfolios continue to outperform the market, your retirement plans remain secure and they will continue to remain secure. We continue to keep a close eye on everything, especially preservation of your capital. Our strategy continues to work and I like very much how we are positioned now and for the future.

 

If you have any concerns whatsoever about your financial health, or of facing and thriving in the winter ahead, please do not hesitate in the slightest to contact me. It would be my honour to talk with you about it.

 

 

Tyler Marche, MBA, CFP, FCSI

Your life, uncomplicated

 

tyler.marche@rbc.com

1-416-974-4810