June was another positive month for investors. As we reach the halfway mark of the year, investors portfolios would appear to be off to a good start. 

 

Most of the returns would be attributed to global market exposure – U.S. and International.  The AI trade continued to power the U.S. markets in June. The concentration of the top 10 companies, dominated by the mega cap “tech” companies, has reached a record 37% of the S&P 500 returns. It also represents a shocking $18.2 trillion in market cap!! Eight of these 10 companies have benefited from the AI trade so you can see that while it has been very beneficial to investors, it also highlights the increasing systemic risk to the market as well. The overall economy will be a lot more sensitive to the event risks of any of these tech companies. 

 

It has been a bit more challenging for Canadian investors as Canadian equities have lagged global markets, including emerging markets. We may sound like a broken record but the S&P/TSX Canadian Dividend Aristocrats is up only 3.23% this year vs 6.1% for the S&P/TSX Composite. This is a bit of a surprise for us as the Bank of Canada was one of the first central banks to cut interest rates. Even if it was a modest 0.25% cut in rate,  it did signal that further cuts were likely. 

 

The bond market had a slightly positive month, but the more interest rate sensitive equities generally sold off led by the banks and Telco’s. Our beloved banks were down -2.7% last month and the Telco’s a whopping -6.2%. Virtually all the 6.1% return for the TSX Composite has been from the energy and metals.

 

With low volatility, high valuations, tight bond spreads, and elevated geopolitical risk, we continue to be patient in this market. Earnings season is once again upon us so we will see what message companies are signaling for the rest of the year. 

 

My Gift Now (Feature of the Month)

 

One of our favourite parts of the Life Wheel is, “My Gift Now.” Having a comfortable nest egg gives our clients the ability to generously help family members, or others, when they need help the most. It’s important for us to understand the goals and the needs of our clients so we can find ways to help fulfill these ‘gifts.’

 

If you are financially capable this could be a ‘gift’ to younger members of your family to help fill a financial gap. It could be paying for a wedding, a down-payment on the purchase of a new home, or a lump sum when a new baby arrives. We call this the gifting with warm hands as it is from the heart that is both meaningful and timely. 

 

Our Stories:

 

i.    A grandmother with six grandchildren wanted to gift a specific amount of money to enhance her grandchildren’s lives while she was alive. She specified that the funds were to be used for educational purposes or the purchase of a new home. Before she died, she was able to see how much her gift made a difference to her grandchildren.

 

ii.    A family with three sons wanted to ensure that each son had a sizeable downpayment for a home. We ran a financial plan to see what they could afford without compromising their own financial security. Today, all three sons have a home they call their own. 

 

iii.    A client wanted to support her niece by paying for her master’s degree. She knew that she would not have been able to achieve her goal without her help.

 

Our Expertise:

 

Each solution requires putting a plan in place so that your gift will not compromise your own security. Our financial modeling ensures that you will be in good shape by answering the questions, “what is the best way to give a gift to them now? And, are there any tax implications for them and for us?”  

 

T.A.G. ...on a lighter note!

 

A staycation, a vacation spent close to home, offers a refreshing alternative to traditional travel. Amid the hustle and bustle of everyday life, staycations provide an opportunity to unwind and explore local attractions without the stress of long journeys or the expense of far-off destinations. It’s a time to discover hidden gems in their own neighborhoods, indulge in leisure activities, and create memorable experiences right at home. What better way to find a deeper appreciation for one's surroundings and provide a much-needed break while supporting local people and businesses.

 

T.A.G Ideas:

 

1.    Warsaw Caves Conservation Area: This Conservation Area has 52 unserviced campsites in a beautiful wooded setting, just 25 minutes outside of Peterborough. It’s name comes from a series of seven caves found in the park. The caves formed thousands of years ago at the end of the last ice age.

 

2.    Ideas for Kids
https://museumofillusions.ca/?gad_source=1&gclid=EAIaIQobChMIzrnXiNH-hgMVozIIBR1iCgIhEAAYASAAEgK6FPD_BwE

https://blackcreek.ca/?gad_source=1&gclid=EAIaIQobChMI752EltH-hgMVvzcIBR38PwHZEAAYASAAEgLuAfD_BwE

https://piratelife.ca/day-trips-toronto?gad_source=1&gclid=EAIaIQobChMIwrDkotH-hgMVDET_AR0j6gscEAAYASAAEgKHYfD_BwE

 

3.    Riverwood Trails (in Mississauga) = Light hiking to see chipmunks, squirrels and trees that swish with the wind 

 

4.    Wu Tai Shan Buddhist Garden (in Franklin, ON) = Unique place to visit but be prepared to walk quite a bit. Parts of it are still under construction, but it’s a pleasant day trip.

 

5.    The Sunflower Farm: experience life on a farm in a stunning 20-acre sunflower field (2 locations: Beaverton & Lindsay, Ontario) with events and workshops throughout the summer. Walk the trail that is shaped as a sunflower through thousands of blooming sunflowers! The Sunflower Farm has one goal: inspire the next generation to get back to their farming roots and connect to farmers across Ontario. (www.thesunflowerfarm.ca)

 

T.A.G. Reading (...and Listening!)

 

For any fans of ‘This is Us’, we’d recommend the new re-watch podcast ‘That was Us’. Mandy Moore, Sterling K. Brown, and Chris Sullivan dive back into the world of the Pearsons, reliving each episode and all the life lessons that came with it. Together, they dig in deep, have the tough conversations, bring in very special and familiar guests, share never before heard behind-the-scenes moments, and feature listeners in highly anticipated fan segments.

 

The School of Greatness: good podcast for those who want to try various ways of improving their mental wellbeing.

 

How I Built This, with Guy Raz who interviews the world's best-known entrepreneurs to learn how they built their iconic brands.

 

The Women, by Kristin Hannah. This terrific novel tells the story of a U.S. Army nurse who serves two tours on the frontlines in Vietnam before returning home to a country rocked by protest and anti-war sentiment. The author, Kristin Hannah, has written a number of books that did quite well—including this one—and it’s not hard to see why. It’s a beautifully written tribute to a group of veterans who deserve more appreciation for the incredible sacrifices they made. 

 

Infectious Generosity, by Chris Anderson. Chris, who has been the curator of TED Talks for more than two decades, explores how the internet can amplify the impact of generosity. He offers a plan for how everyone—including individuals, governments, and businesses—can foster more generosity. It’s not just about giving money; he argues that we need to expand our definition of generosity. If you want to help create a more equitable world but don’t know where to start, Infectious Generosity is for you.

 

Slow Horses. If you love stories about spies, this if for you. It’s a British series about undercover agents assigned to Slough House, a fictional group inside MI5 where people are sent when they mess up badly, but not quite badly enough to get fired. Gary Oldman plays the head of Slough House, who’s basically the polar opposite of James Bond. He’s a slob and an alcoholic, but then he surprises you with some amazing bit of spycraft. Like le Carré novels, Slow Horses has enough complex characters and plots that you have to really pay attention, but it pays off in the end. 

 

Brave New Words, by Sal Khan. Sal—the founder of Khan Academy—has been a pioneer in the field of education technology since long before the rise of artificial intelligence. So the vision he lays out in Brave New Words for how AI will improve education is well grounded. Sal argues that AI will radically improve both outcomes for students and the experiences of teachers, and help make sure everyone has access to a world-class education. He’s well aware that innovation has had only a marginal impact in the classroom so far but makes a compelling case that AI will be different. 

 

How to Know a Person, by David Brooks. His key premise is that conversational and social skills aren't just innate traits—they can be learned and improved upon. And he provides practical tips for what he calls “loud listening,” a practice that can help the people around you feel heard and valued. It’s more than a guide to better conversations; it’s a blueprint for a more connected and humane way of living.

 

T.A.G. Admin

 

We have become aware of a few incidents of cyber fraud, and wanted to take this time to remind you to be cautious online to keep your personal and financial information safe and secure.

 

Fraudsters have become more creative and are using technology to conduct a variety of schemes such as phishing emails, phone scams, and impersonation scams. Please be on alert if you receive emails asking for your PINs or social insurance number, be cautious to reacting to urgent requests, and verify a caller’s identify if they claim to be from a business or organization.

 

If you detect any suspicious activity, please take the following steps:

 

i.    Contact Equifax and TransUnion (1-800-663-9980) to set up fraud alerts on your credit reports.

ii.    Review your financial statements for any unauthorized transactions.

iii.    Update your account passwords with strong, unique passwords and set-up two-factor authentication where possible.

 

Your security is our top priority, so if you are in this type of situation, please report it to our team immediately for further assistance.

 

Upcoming Webinar Reminders:
(Invitations sent via email for registration, recording available)

 

July 17: The Science of Trust