CIBC PRIVATE WEALTH

Wood gundy | Wood Priddle Sheppard Financial Group

Tactical Growth Strategy

Weekly Briefing for May 15^th, 2023

When I was kid and used to ask my mom to spend money on foolish things, I would always be told "money doesn't grow on trees". I can understand being told a mansion with a backyard pool was out of the question but a big box of Frosted Flakes on grocery day when they weren't on sale would have been Grrreat.

In the next 2 weeks, we're going to hear a lot about the U.S. Debt Ceiling. Essentially, the debt ceiling is just another word for debt-limit, or the amount of money the government is permitted to spend. If the Republicans and Democrats can't come to an agreement to borrow more money, then the government will run out of cash and be unable to meet its day-to-day spending obligations. These obligations include interest payments on their bonds, public service salaries, public benefits, etc.. Ultimately, it would be an international financial catastrophe as the USD is the world's reserve currency.

The debt limit is expected to be reached on June 1st. You can learn more about the negotiations here. The limit is $31.38T, approximately $93,000 per American. I don't know how we, as a society, are going to be able to reverse course to bring down this debt, but I assume the path will be hard.

As the curfew is about to be hit, I hope America's leaders remember their moms as they head back to negotiations this week. If my mom was at the table, the debt ceiling would be solved with "because I said so, that's why".

Happy Belated Mother's Day!

CIBC Private Wealth consists of services provided by CIBC and certain of its subsidiaries: CIBC Private Banking; CIBC Private Investment Counsel, a division of CIBC Asset Management Inc. (“CAM”); CIBC Trust Corporation; and CIBC Wood Gundy, a division of CIBC World Markets Inc. (“WMI”). CIBC Private Banking provides solutions from CIBC Investor Services Inc.(“ISI”), CAM and credit products. CIBC World Markets Inc. and ISI are both Members of the Canadian Investor Protection Fund and Investment Industry Regulatory Organization of Canada. CIBC Private Wealth services are available to qualified individuals. The CIBC logo and “CIBC Private Wealth” are trademarks of CIBC, used under license.

Scott Sheppard is an Investment Advisor with CIBC Wood Gundy in Corner Brook, NL. He and his clients may own securities mentioned in this column The views of Scott Sheppard do not necessarily reflect those of CIBC World Markets Inc

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