With fall well underway and the holiday season quickly approaching we thought it would be a good time for another newsletter. Market wise, please see the link below for Optimizes full report, and as always if there are any questions please don’t hesitate to get in touch. On a personal note, Kal is now 6 months old and almost crawling! No sleep is being had, but I am told that will change at some point….hopefully.
Additionally, we now have an exciting new product to offer, the Manulife Bank: Advantage Account. The Advantage Account is just that, a bank account with advantages! Now, who doesn’t want that? Below we have listed a few of the benefits this account offers.
- Combines the advantages of a chequing and high interest savings account
- Fully liquid – no penalty for withdrawal.
- No monthly fee
- With a $1,000 + balance everyday banking transactions are free.
- Access your money from 1000’s of ATMs across Canada (Canada Exchange Network), through online banking and the Manulife Bank App
If you are interested in learning more just send us a message and we can go into further detail.
We hope everyone is having a wonderful October!
Full Report from Optimize Wealth Management:
Joe and Stu
From the Desk of Optimize Wealth Management – Outlook Ahead
The inflation story is far from over — as are the monetary policy practices of the central banks — and we are likely to
see elevated inflation that exceeds central bank targets over the near term. With slower economic growth, investors
should also expect downward earnings revisions, as analysts cut price targets to discount the effect of higher prices
and higher interest rates throughout the economy. However, should inflation moderate by the middle of 2023, the
central banks will have enough room to lower rates if need be.
Despite slower growth, if the labour markets can continue to remain robust and cushion the effects of higher
interest rates, we remain optimistic that a full-blown recession can be averted in Canada. Certainly, the prospects
for a softer landing appear much greater for Canada, compared to other nations such as those in Europe, which
continue to struggle with skyrocketing inflation, high unemployment and an energy crisis that is only expected
to get worse as the winter months arrive. Canada has the enviable position of being a net exporter of food
and energy, as well as having comparatively strong public finances, which continue to provide a solid economic
buffer. These and other factors lead us to believe that Canadian equities will continue to outperform their global
counterparts well into 2023. We expect that the U.S. will outperform developed Europe and Asia, two regions that
face ongoing and significant geopolitical challenges.
With the continuing uncertainty, investors should also expect continued volatility. However, while market declines are
never easy to endure, they are a normal part of the investing cycle. And, investors may be wise to remember that
they are most often followed by periods of strong returns. In looking at market corrections of 10% or more on the
S&P 500 Index since 1980, the average one-year return from the low of the correction is 23% and the average two-
year return Is 37.5%. Periods of retrenchment have always been followed by new growth, economic expansion and
improved equity values. There is little reason to expect otherwise in this cycle.
Full Report from Optimize Wealth Management:
This report is provided by Optimize Wealth Management. It is for informational and educational purposes only as of the date of writing, and may not be appropriate for other purposes. The views and opinions expressed may change at any time based on market or other conditions and may not come to pass. This material is not intended to be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities and should not be considered specific legal, investment or tax advice. The information contained in this report has been drawn from sources believed to be reliable, but is not guaranteed to be accurate or complete. This report contains economic analysis and views, including about future economic and financial markets performance. These are based on certain assumptions and other factors, and are subject to inherent risks and uncertainties. The actual outcome may be materially different. Optimize Wealth Management and its affiliates and related entities are not liable for any errors or omissions in the information, analysis or views contained in this report, or for any loss or damage suffered.