Kicking off October 2023

It’s fall now and the signs are all around.  Cooler weather, less sun, more rain.  Last month was about central banks pausing their interest rate hikes due to the slowing economies.  Like the weather the economic climate is always changing. 

In Canada we are getting more evidence of the slowing economy with this week’s release of the GDP numbers.  July showed no growth in the economy and the preliminary August numbers show .1% or one tenth of one percent. The financial markets are mixed in their response citing the slowing economy as evidence the higher rates are working while still hoping to achieve the soft landing. 

The news from the central banks that our higher rates are not expected to come down much in the next year caused the markets to stumble a bit and the bond rates to rise.  Expect more in the near term. 

At times like this caution is always a prudent short term response while assessing the extent of a slowdown in the economy.  We are recommending short term GICs and MIC shares as a short to medium term investments that have weathered the markets well in the past.  We are jointly hosting a MIC seminar with Manning Elliott Chartered Accountants in October.  Look for the announcement by email in the next couple weeks.  Hope you can join us online or in person for the event.