Dear Valued Client,

 

With September behind us, we’ve passed out of Q3 and are now inching through the last quarter of the year. We always appreciate these little opportunities to look back and see how the last few months have gone for our economy. Seeing headlines about the markets climbing or falling from one day to a next can be dizzying. But “zooming out” and looking at the markets with greater scope brings more clarity and a better idea of what the future might hold.

 

First, a look back. The S&P/TSX composite rose steadily through the quarter, as it has for much of the last year. Despite some of those ups and downs, particularly in early August, the overall trajectory is very much positive. In fact, we’re up nearly 5,000 points—22.82%!—from the end of last year’s Q3.1

 

The Bank of Canada also issued two small interest rate cuts in Q3, bringing rates down to 4.25%. While it will take time for the overall effects to really make an impact on our wallets, it’s a positive sign about the state of the economy and should be a boon for both consumers and small businesses.2

 

Now, looking into the future. Speaking of those rate cuts, the central bank has indicated it is open to trimming the rate again this year. We’ll have two chances to see what they decide, on October 23 and December 11, so it will be interesting to see what comes from those meetings.2 In terms of market performance, the holiday season historically brings a boost to the market, especially for companies in the retail sector. And while we may see a small ripple effect from the U.S. presidential election on November 5th, election-related volatility typically doesn’t last for long.3

 

While there’s no way to tell for sure what the next few months will bring, We are personally optimistic about the state of the market and hopeful for the future. And no matter how the market fares, we hope the rest of your year is happy, safe, and productive!

 

Sincerely,
 

The Omell Financial Group

 

1 “S&P/TSX Composite Index,” S&P Global, www.spglobal.com/spdji/en/indices/equity/sp-tsx-composite-index/#overview

2 “How Much Will the Bank of Canada Cut Rates?” Morningstar, www.morningstar.ca/ca/news/254608/how-much-will-the-bank-of-canada-cut-rates.aspx

3 “How do U.S. elections affect stock market performance?” ScotiaFunds, www.scotiafunds.com/en/home/news-insights/article.us-elections-stock-market.html

 

Original from BGM Writer Lisa Christensen

 

Sourced from Bill Good Letters Library

 

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CIBC Private Wealth consists of services provided by CIBC and certain of its subsidiaries, including CIBC Wood Gundy, a division of CIBC World Markets Inc. The CIBC logo and “CIBC Private Wealth” are trademarks of CIBC, used under license. “Wood Gundy” is a registered trademark of CIBC World Markets Inc.

 

This information, including any opinion, is based on various sources believed to be reliable, but its accuracy cannot be guaranteed and is subject to change.

 

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