Lisa Applegath
October 16, 2024
So Far, So Good!
The end of September brings a change a season and the end of the third quarter (Q3) of 2024. So far this year, investors portfolios have been a source of good news. Q3 added modestly to the growth.
That being said, it was a bit of an eventful summer as we went through a couple rough patches along the way as investors tried to handicap the direction of interest rates and the potential for a recession. The biggest hiccup was from mid-July to August 06 as the S&P 500 was down almost -10% but recovered just as quickly. Other equity markets were affected as well, and the bond yield plummeted.
The drop in yield lead to a surge in performance from low volatility, higher yield sectors and under-performance by the former leadership in large cap technology. In Canada, the best performing sectors were real estate, financials and utilities/pipelines, which was great for investors portfolios. A similar story happened in the U.S.. Our Global value Managers out-performed while our growth Managers took a brief hiatus. With the plunge in longer-term rates, the longer duration bond indexes performed the best, while our managers (which are typically shorter duration) under-performed, but they are ahead of the benchmarks year to date.
Despite a tough 2022, overall performance has been very good in the 2020s. Over the past twelve months, the equity markets have been exceptional through a combination of growing earnings and increased valuations. At this point, a prudent manager should be taking profits and rebalancing into under-performing asset classes. We have been carrying a little extra cash as we look for value but have had difficulty deploying capital in a momentum driven market. We have seen this movie before where investors focus turns to performance at the expense of risk management. Without a doubt these conditions can persist, but at some point reality will set in and things can reverse course very suddenly. The first few days of August were a good lesson in how fragile markets can be when an unforeseen surprise occurs.
Our game plan has not really changed much from August. We still look for companies that are growing their earnings, but don’t have an extended valuation. We have an opportunity to deploy capital in an new multi-strategy fund and we are fine tuning our fixed income allocation.
My Passion Project (Feature of the Month)
The goal of your ‘passion project’ is to spend surplus capital to enrich your life now. We want our clients to focus their energy and assets on projects that will inspire and motive them and fulfill their lives in different way.
Here is a story from one of our clients, Michelle, doing exactly that!
Creating the WonderLit Studio: A Run for the Sun
For a very long time, I’ve had a dream to create an enchanting space that would support meaningful conversations, storytelling, writing, and intimate musical gatherings. As an author and storyteller, I’ve held many workshops over the years in rooms that are cold and stark, and not at all conducive to the emergence of the wise, mythic, inner voice.
Last November, nudged on by an inner tug that said, “It’s now or never!” I decided to pull that dream out of the drawer and make it a reality. Covid was hard on all of us, and I felt our collective thirst for reconnection. When people asked me what I was doing, I said, “It’s a run for the sun!” It was a run for warmth, for the rekindling of the primal magic of storytelling around the fire.
After some searching with a real estate agent, I found a space with “good bones” on the second floor of a brick building on Wallace Avenue, a short walking distance from the Lansdowne subway. Then, with some fabulous interior design help, we created The WonderLit Studio. We brought a great deal of thought and care to everything we put into the studio, so that struggling artists who came in would feel uplifted and valued in a space “where beauty can breathe.”
When you walk into the studio, you instantly feel the quiet invitation to reflect, connect, and imagine. There’s a podcast studio for book narration and recorded conversations, and studio chairs that can be moved around in various configurations break-out conversations. A Yamaha keyboard in the corner of the main space invites artists to come and plug in. Those who are holding events have the benefit of the Neon Commissary directly below us, providing sandwiches, salads, great coffee, and a delicious catering menu.
The studio’s feature piece is the archway from the kitchen to the studio. It tells the story of this artistic space. It lets you know that when you enter, you’re crossing a threshold into a liminal place, where dreams and mythic imagination are welcome.
We’d love to hear about your Passion Projects, too. We want to encourage you and coach you in every way possible to fulfill these dreams and follow your passions.
T.A.G. ...on a lighter note!
During this season of Thanksgiving, we always like to reflect on what we are thankful for...
Lisa and Tom
We were very thankful to have had the opportunity to go on two special trips with our family this year. Early in the year, we traveled with Reed and Wil to Japan which was a spectacular combination of nature, culture, and food.
In the summer, we traveled to Purcell Lodge with Tom’s sister and brother and their spouses and were able to experience the breathtaking beauty that the high alpine in the Rockies offers to interpret hikers. We created memories that will last with us forever.
Susy
As I reflect on my children’s milestones this year, I am grateful that they are all pursuing, with earnest, their passions – whether that’s playing competitive soccer in Argentina, developing their culinary journey with skilled and ardent Chefs in our great city or living a dream of joining a sorority at University. My husband and I feel equally proud and blessed.
Jenn:
I am grateful to my teammates for uplifting me on my bad days, cheering me forward on the good days, and always feeding me.
Mara
I’m very grateful for the abundance of parks, trails and natural beauty Ontario has to offer. This spring/summer, I was able to take a number of hikes and nature walks with my pup and with friends. We saw new places (Mono Cliffs, Warsaw Caves), and went to some of our local favorites (Sunnybrook Park, East Don Trail). I’m going to miss the trails when winter arrives, but I’m equally grateful for the outdoor activities that season brings.
Maddie
I am most grateful for my family and friends who provide me with lots of support, happiness, and laughter! I am also thankful for my health this year because it has allowed me to travel and explore many new places and create special memories with the people that mean the most.
Matt
I’m thankful for the peace and security of living in a safe community, always having food on our plate, and watching William and Mackenzie grow each day. I’m grateful for the (sometimes limited) time to prepare special meals for my family and the time we have to share stories at the table. I also enjoy reading with the kids, and now enjoy William reading to me! These small but meaningful moments remind of how fortunate we are.
T.A.G. Reading (...and Listening!)
Do you love listening to podcasts? Did you know that CIBC has a series of podcasts available for listeners.
• CIBC Curve your Enthusiasm
• CIBC Smart Advice
• CIBC Capital Markets
• CIBC Innovation Banking
• CIBC Private Wealth US
• The Sustainability Agenda
• The Monitor
…and quite a few more! Check them out, and let us know what you think.
T.A.G. Admin
Upcoming Webinar Reminders:
(Invitations sent via email for registration)
October 28
Navigating the 2024 US election (Part I: Pre-election)
October 29:
Securing your family’s future: The importance of estate planning
November 12
Navigating the 2024 US election (Part II: Post-election)