The 60-40 portfolio strategy is a touchstone for the industry, and shorthand for the tried and trusted method of protecting capital from wild market swings. There are endless variations on this theme, largely dependant on client risk tolerance and time horizon, but the navigational starting point of a “balanced” 60% stocks and 40% bonds mix has endured.
For the past two winters, many snowbirds have been forced to hibernate at home. With travel now accessible, some are looking to resume their migration south to escape the cold. If this is within your plan, consider the potential implications.
Over the summer, the U.S. reported its second successive quarter of declining GDP, which commonly defines a recession. Yet, the U.S. government pointed to economic data that suggested otherwise: strong jobs growth, robust corporate earnings and continued consumer spending. However, it prompted considerable debate about whether the U.S. had entered a recession, and if Canada would follow. Semantics aside, there is little doubt that we have entered a slowing economic period, largely due to continuing efforts by the central banks to aggressively raise rates to curb inflation.
As the central banks continue to raise rates in their fight to curb inflation, many observers have pointed to the current outlook for the economy and financial markets as uncertain: Did the central banks wait too long to control inflation? Is a full-blown recession imminent?
We are in one of the most aggressive tightening cycles in more than 40 years. Are higher rates helping to curb inflation? At the time of writing, there have been positive disinflationary signals as commodities prices, notably energy, have moderated and certain pricing pressures appear to be easing.
Keeping your nerve when you see minus signs on your portfolio statement is not easy. Throw in a global pandemic, the rising cost of living, interest rate hikes, and a news cycle of war and political division, and it’s little wonder many investors want to exit the market and hunker down until the good times return.
This past spring, the federal government delivered its budget with few significant changes for investors: no changes to the capital gains inclusion rate or federal income tax rates. Many initiatives address the hot housing market. Here are some highlights.
The long-term case for dividend-paying equities continues to be compelling. During volatile markets, such as we are experiencing today, dividends can play a role in reducing overall portfolio risk and volatility. Over the longer-term, increasing dividend payouts and the potential for compounded growth can make dividends an integral part of an investment portfolio.
Goals-based investing differs from traditional investing programs that generally allocate assets and measure progress based on market benchmarks. Instead, it focuses on the investor by mapping savings and investments to unique goals, which may involve specific time horizons and risk profiles, while measuring progress towards achieving these goals.
It has been difficult to find much market commentary that suggests positive developments in the financial and economic markets over recent times. The reasons are many: high and persistent inflation, more aggressive tightening policies by central banks and the prospect of recession. This has created significant uncertainty over the path forward.
With slowing global growth, persistently high inflation rates and as the central banks have taken a more aggressive position to combat inflation by raising interest rates faster than anticipated, the media has been preoccupied with evoking fear that a recession is imminent. While this is a legitimate worry, we suggest that maintaining perspective may be worthwhile.
With the arrival of summer comes cottage and cabin season once again! Many family properties have been owned over generations and there is often a desire to keep them in the family for decades to come. Yet, many children do not have the funds needed to buy the property.
Filling up your gas tank in recent months is like seeing the bill for your toddler’s birthday party – “how much?” For a smooth family life, however, both must be paid.
Gordon Gekko hasn’t done the investment industry’s reputation any favours. Michael Douglas’ unscrupulous movie character quickly became shorthand for all that is wrong with Wall Street and financial markets with his infamous ‘greed is good’ speech. But you don’t have to look too far away from the big screen to see real-life examples of people whose actions have perpetuated the link between the wealth industry, untrustworthy characters and get-rich-quick trades.
Intergenerational wealth, on our TV screens at least, conjures images of Succession’s Logan Roy dismissing one of his weasel kids with a sneer and expletive. Roy, the fearsome patriarch, who built his business from nothing, watches in disgust as the heirs to his throne – who do no work of any note - connive and backstab in an effort to win the keys to more money and power.
Canada’s benchmark interest rate hit an all-time high of 16% in 1991 – and here investors are in 2022, freaking out over projections it’ll touch 1% by June. But there’s a reason for the current unease. Despite rate increases being forecast the minute governments and central banks opened the floodgates on trillions of dollars of stimulus, things have now “got real”.
Quintessence Wealth (Q Wealth) is a partnership that is registered as a portfolio manager, exempt market dealer and investment fund manager. The portfolio manager registration allows Q Wealth to provide investment advice to its clients. The exempt market dealer registration allows Q Wealth to engage in trading activity. These services are provided by Q Wealth through registered advising representatives and dealing representatives, respectively.
Q Wealth is a partnership that is owned by its partners, including Precision Wealth Management. As a client of Q Wealth, you may receive services from both Q Wealth and Precision Wealth Management. Note that individuals from Precision Wealth Management will only provide investment advice and trading advice if they are registered as advising representatives and dealing representatives of Q Wealth, and in providing such services, they will be doing so on behalf of Q Wealth only. Precision Wealth Management may however provide wealth management services such as financial planning, estate and retirement planning, insurance, group benefits and others.
Q Wealth Partners is a registered trade name of Quintessence Wealth, a registered Portfolio Manager in Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, Quebec, and Saskatchewan, an Investment Fund Manager in Newfoundland and Labrador, Ontario, and Quebec, and an Exempt Market Dealer in Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Quebec, and Saskatchewan. The Ontario Securities Commission (OSC) is the principal regulator for Quintessence Wealth. Please visit www.qwealth.com for more information.
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