June 2023 SWM Letter: Happy Canada Day!

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June 2023 SWM Letter: Happy Canada Day!

We’re nearing mid-year 2023 so we wish everyone a very happy July 1st.   We hope rains will continue to ease this worst-ever year of forest fires which have plagued our regions with haze and smoke.  If it’s sunny on Canada Day – enjoy.  If there’s a mild rain enjoy it anyway, as it helps clear some of the smoke we’ve been breathing.  Take care of yourselves and your dear ones; avoid heavy smog if you can as danger lurks in both the larger particles but also the microscopic gasses mixing into our air from higher altitudes.

Briefly on investments:  next month we’ll receive ½ year statements showing modest and successful growth overall.  2023 opened well but a few months have struggled more with higher interest rates in the battle with inflation …which has dropped in Canada from 9% to 3.4% (USA now at 4%).   High measures for wages, employment, and food prices, keep central banks focused on this front.   By year-end we may see inflation edge below 3%, yet it will take longer to sustain 2% later in 2024, early 2025.  Our investment allocations outside Canada have sustained access to Growth, and focus on Income continues solid and vital.

Recession remains an open question:   will it be a soft-landing or no landing (meaning modest growth continues while economic stresses resolve).   There is daily discussion (flip of the coin?) between brief shallow recession or narrowly avoiding it altogether.  Either way, there’s no hard landing in the forecast.  Clearly we are getting through it.   We continue investing for income and growth to fit your personal goals and needs.  With interest rates at or near the peak, and a new cycle of economic growth to be born, we see hefty rewards ahead.  In this updated chart for BULLS AND BEARS, we see recessions are comparatively brief, and bull markets push forward longer and higher than ever before.  Patience in modest periods sets the foundation for major growth to come.

Two newsworthy discussions:  here are two links to click and see what interests you.

  • New Graduates will enjoy Places to Consider Investing your New Income by our friend Tim Cestnick.   He always opens with a funny story so that alone is worth the click, but now as you’re potentially earning more money than ever before where are your best financial priorities?  Consider the value of reducing student loans, and optimizing between RRSP, TFSA, and the newest FHSA  (first home savings account as I shared with you in November).   Similarly for anyone whose earned income is leaping ahead.   Ponder and share this, and let’s set time pronto to discuss how these ideas apply to you.
  • Adult Children Spending on Aging Parents.  Two kinds of reader will benefit most here:  (a) seniors who have too little in hand for a safe retirement,  (b) adult-children who may need to support their parents in retirement.  There is legal basis for adult children having to assist parents in later years.  This article urges younger and senior generations to discuss this openly.  The few statistics in this piece form a compelling story of younger people supporting their elders, often at great cost and even risking their own retirement.  Ponder and share … who could you help by sharing this piece?

Next month in the July/August SWM letter we will review the past 6-12 months and explore key areas for the rest of 2023 and into 2024.  Our focus forever is to achieve and sustain your personal goals and needs, reviewing any changes you experience along the way, and ensuring your continued safety, health, and comfort.  We are always here for you.  Keep well!

Yours in Financial Security for LIFE.

Brian Weatherdon, CFP, CLU. 905-637-3500

Whitney Hammond, CFP, CLU.  905-637-3500

627 Guelph Line, Burlington, Ont. L7R 3M7

** This monthly letter touches on key strategies in Canadian and global investing and financial planning. This letter is not an offer to sell any kind of security, insurance, or program. Historical returns and risk measures are not a valid guide to future performance. Returns are from publicly available sources and research from a variety of firms including but not limited to Canada Life, CIBC, Dynamic, Mackenzie Financial, RBC / PH&N, and more.   Opinions in this letter belong solely to the author and no other body is responsible for the content expressed here. We value opportunity to coordinate with your legal and accounting advisers to further your financial goals in home and business.  We are grateful always to receive your comments and questions.

2023-06-29T12:40:00-04:00June 29th, 2023|