October seemed to be a continuation of September with a steady march higher in equity markets but we had a Halloween surprise that dragged down the equity indexes so they ended the month modestly higher.

 

The bigger news for the month was the increase in yield for the long bonds in the U.S. The 10-year Treasury went from 3.80% to 4.28% by month end. This was a significant trend reversal from the steady decline in long rates we had observed from May to September and a reversal of one of the trends contributing to higher valuations in equities. For October, this had a negative impact on the bond markets, especially longer duration bonds. 

 

Despite a more aggressive rate cutting agenda in Canada, we also saw the 10-year Canada bond yields go from a low of 2.87% in mid-September to 3.22% by October 31. This had a significant impact on interest rate sensitive sectors like real estate and the telco’s which were especially hard hit. It also halted the decline of mortgage rates which may have an impact going forward on mortgage renewals. It is estimated that more than one million mortgages are scheduled to renew in 2025. Definitely worth watching the Canadian real estate landscape. 

 

The other half of valuations is earning growth. Q3 is pretty much in the books and while earning and revenues grew year-over-year, the rate of growth was below the five and 10 year average. The combination of unexciting earnings, high valuations, and nervousness around the election resulted in a more or less flat month for investor’s portfolios.

 

Yes the election. Wow, that was unexpected. It caught most institutional investors offside as many had hedged against a drawn out election crisis. Once it was apparent that it would be a “red sweep” they had to unwind their hedges and reposition their portfolios to reward companies that might benefit from the new regime. The “Trump-bump” may persist until year end based on the belief that the new administration will lower taxes and regulation. There are, however, other policies that have been floated that would have the opposite effect on markets. At the moment, the balance of power in The House of Congress and the look and feel of Trump’s cabinet are still to be determined so it may a bit too early to make significant movements in the portfolios. We are working hard to determine how we will modify our asset allocation and approach going forward into 2026.  Hang on to your hats.

 

 

My Giving Back (Feature of the Month)

 

To give back is to “plant trees under whose shade you do not expect to sit.” This can be done now, or after you are gone. It can be a one-time gift or an on-going gift. You can carve your name on the front of a building or you can be anonymous. You can give through a foundation – yours or one belonging to some one else. But regardless of how you give, or to whom you give, we can help you create a tradition of ‘giving back’ that will be passed down for generations in honour of your generosity and life.

 

Here is a story from two or our wonderful clients, doing exactly that!

Making a Difference in a Small Community

After careers of more than 30 years in the banking and health care fields and raising a family in the GTA, in 2011 we retired to a rural, lakeside property in the Kawarthas. 

 

One of our retirement goals was to get involved in the community, so we joined a local church.  As part of their outreach program, the church maintained a small food cupboard.  Patty volunteered to assist with the distribution and replenishment of the cupboard.  Demand grew quickly and by 2014, the Church was operating a full scale Food Bank with regular open hours and serving an increasing number of food insecure people in the community. Patty was now managing the operation with assistance from Joe.  

 

Fast forward to 2024, we are still running the Food Bank. However, we now have a volunteer staff of more than 30 people and support over 80 food insecure local families, 220 individuals each month. The need continues to increase, so to keep the shelves stocked, we network with other local churches, community groups and area businesses. Our couple of hours a week has grown to a commitment of at least 20 or 25 hours.  

 

We love what we do. Volunteer work keeps us grounded and gives us an appreciation for what we have.  There is a sense of satisfaction in giving back to the community and realizing that you are making a small difference in the lives of those who are less fortunate.  And, best of all, it keeps us fit!

 

To learn more:
https://www.bridgenorthuc.com/

 

With the holidays upon us, and so many wonderful causes in our different communities, we’d love to hear about your Giving Back. Creating and extending your personal legacy, and your family’s legacy of giving back, completes the circle.

 

 

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

 

Presence: Bringing Your Boldest Self to Your Biggest Challenges

 

Have you ever left a nerve-racking challenge and immediately wished for a do over? Maybe after a job interview, a performance, or a difficult conversation? The very moments that require us to be genuine and commanding can instead cause us to feel phony and powerless. 

 

Too often we approach our lives' biggest hurdles with dread, execute them with anxiety, and leave them with regret. By accessing our personal power, we can achieve "presence," the state in which we stop worrying about the impression we're making on others and instead adjust the impression we've been making on ourselves. As Harvard professor Amy Cuddy's revolutionary book reveals, we don't need to embark on a grand spiritual quest or complete an inner transformation to harness the power of presence. Instead, we need to nudge ourselves, moment by moment, by tweaking our body language, behavior, and mind-set in our day-to-day lives. Amy Cuddy has galvanized tens of millions of viewers around the world with her TED talk about "power poses." Now she presents the enthralling science underlying these and many other fascinating body-mind effects, and teaches us how to use simple techniques to liberate ourselves from fear in high-pressure moments, perform at our best, and connect with and empower others to do the same. 

 

Brilliantly researched, impassioned, and accessible, Presence is filled with stories of individuals who learned how to flourish during the stressful moments that once terrified them. Every reader will learn how to approach their biggest challenges with confidence instead of dread, and to leave them with satisfaction instead of regret.

 

 

Ina Garten: Be Ready When the Luck Happens

 

This is a great book for anyone who loves the Food Network or considers themselves the famed, so-called, ‘home cook…”

 

For the first time, Ina Garten presents an intimate, entertaining, and inspiring account of her remarkable journey. Ina’s gift is to make everything look easy, yet all her accomplishments have been the result of hard work, audacious choices, and exquisite attention to detail. In her unmistakable voice (no one tells a story like Ina), she brings her past and her process to life in a high-spirited and no-holds-barred memoir that chronicles decades of personal challenges, adventures (and misadventures) and unexpected career twists, all delivered with her signature combination of playfulness and purpose.

 

Podcasts:

•    Single Best Idea with Tom Keene – 6 min podcasts
•    Bloomberg Surveillance for more in-depth market analysis (also with Tom Keene)

 

T.A.G. Admin

 

2024 TFSA contribution limit: $7000
Please reach out to Mara Draper, if you still need to arrange for your 2024 contribution.

Power of Attorney: Age 18+
Rebecca Fisch
RSF Law
rebecca@rsflaw.ca | www.rsflaw.ca

 

Whenever I give talks about estate planning, I always say that if you take one piece of advice from me, it's that every single person above the age of 18 needs to have Powers of Attorney.  

 

Most people do not realize that if something catastrophic happens to their 19-year-old child, or their 23-year-old nephew, no one can act on their behalf unless a Power of Attorney has been signed.  Being a parent does not give you authority to speak to an insurance company, a lawyer or any financial institution on your child's behalf.  

A Power of Attorney document should be thought of like insurance. You hope your child never needs it, but you would not allow them to drive without it.  

 

Powers of Attorney are incredibly easy to get. The Office of the Public Guardian and Trustee makes forms publicly available for free on their website. There are very clear instructions there for how to ensure that the form is completed in a way that will make it legally valid.  

 

You can, of course, always speak to a lawyer if you have questions, but it's not necessary to retain counsel for a young person's PoAs.  What is necessary is to make sure everyone over the age of 18 has signed one.