Insights from our National Conference in Quebec City

We recently spent a few days in Quebec City at the Investia Financial Services Inc. National Conference.  As our head office is based out of this beautiful city they thought that it would be nice for advisors from across Canada, including ourselves to see Investia on its home turf so to speak AND it did not disappoint.  We were treated to a personal tour of the Investia Head office by Louis DeConinck -the President of Investia.  We were intrigued by the structure of how the head office was designed. The past few years they have combined the old original buildings inside the newly constructive renovations – the original brick and windows remain intact.  The company, as well as the city is steeped in history, and tradition with an introduction of the new and modern aspects that are necessary in today’s world.  The office environment is bright and cheery and encompasses the philosophy of work from anywhere.  On any given day any of the management team could be sitting beside any of the employees.  It is a very efficient and friendly work environment.

We are pleased to have chosen to work with Investia, as our Dealer – as the firm is on the cutting edge of many aspects of the Financial Services industry, specifically in the areas of technology, service and privacy.

Throughout the week we listened to many presentations on leadership, operational excellence, communication and of course the markets.  Sebastian McMahon, the Chief Economist at iA Financial Group, provided us with an insight on The Economy & The Financial Markets.  We have summarized some of his comments below that we thought you might find interesting:

• Overall, there is a positive sentiment regarding the markets

• We are likely heading into a coin toss of an election in the US, likely ending in a divided government – so essentially the status quo will remain for the next number of years in the US

• Central banks will start/continue easing – this means that we should continue to see a decline in interest rates going forward

• There are over 100 central banks in the world – currently “central banks are cutting rates in synchronization” (S. McMahon)

• There is more sensitivity in the Canadian housing market with decreasing interest rates than in the US (the difference being our 5- year mortgage terms versus the US 30- year mortgage terms)

• The markets always look 12 months ahead

• Economists (including Sebastian) meet with the Bank of Canada every 6 weeks and attend an annual meeting in Ottawa – they stay on top of what is going on in Canada and around the world

• The typical household is saving more

• Inflation is basically back under control; however, many items are still more costly than they were a few years ago

• The population growth will continue to increase the demand in housing

• As always diversification is key…….there are multiple drivers in several sectors of the economy – i.e. US technology (AI) and Canadian commodities; balance sheets in many of the companies are in good shape – the companies do not seem to be worried about the Canadian debt levels or population growth

We are here if you have any questions related to the above information or your portfolios, or your family’s financial situation.

Enjoy the fall colours AND if you ever get a chance to go to Quebec City, the three of us would highly recommend it.  Bring your walking shoes and your appetite for good food and some wonderful Canadian history in any season!

Health, Happiness & Success!

Deb, Kelly and James

Lest We Forget

As Remembrance Day approaches for another year…..the thoughts of previous wars are overshadowed by current wars around the world. 

Often times, it seems like we are going back in time instead of into the future.

We walked on these stones on the beaches of Normandy, in the photo above, where many Canadian soldiers lost their lives in the spring of 1944 in the Second World War.

It is poignant....and humbling to say the least. 

Let's all do our part to remember.....

Deb, Kelly and the Lifeview Team

Navigating Market Challenges with Confidence

We have taken significant time over the last several weeks to review with our partners what is happening in the world and how it impacts our clients’ portfolios.  See below the culmination of our efforts.  If you have any questions, please feel free to reach out.  We have entitled our article:   Navigating Market Challenges with Confidence (October 2023)

As always, the Lifeview team are diligently monitoring the financial markets and the potential impact on your investments. In recent weeks, we've had the privilege of spending valuable time engaging with our partners and industry experts. We're excited to share with you a summary of our insights and thoughts on the current market landscape.

In today's interconnected global economy, the challenges and uncertainties faced by the United States and Canada have implications that resonate with Canadian investors. Economic signals have been a mixed bag, leaving economists and investors pondering the potential for a recession and its magnitude. Will the economy have a "soft landing," or might we feel a deeper, longer-lasting impact? It is essential to note that this uncertainty isn't exclusive to North America; it's a global issue affecting markets worldwide.

The United States, often considered a global economic leader, has had its share of ups and downs in recent years. The onset of the COVID-19 pandemic initially caused economic turbulence, leading to a significant contraction in early 2020. However, as you're aware, extensive government stimulus packages, strategic monetary adjustments, and widespread vaccination campaigns sparked a remarkable market recovery. These policies have also given rise to concerns about inflation, potentially posing a risk to the economic outlook.

For experts, key economic indicators such as employment figures, inflation rates, and Gross Domestic Product (GDP) growth are sending mixed signals. While low unemployment rates indicate positive signs of job market recovery, they also contribute to rising wages, which in turn can lead to higher inflation. In our view, anyone claiming to have a definite forecast on interest rates and inflation is likely not providing the whole picture.

While a mild recession is expected in many developed nations, it is unlikely to be as severe as the crises experienced in 2008 or 2020. Short-term market volatility, though concerning, typically doesn't have a lasting impact on long-term market trends. To navigate this short-term uncertainty, having a well-thought-out long-term plan is essential, as markets have a track record of delivering positive results over time.

It's important to acknowledge that the unpredictability of the US economy is further complicated by global supply chain disruptions, energy challenges, and multiple geo-political tensions in 2023.

Canada, as a close neighbour and significant trading partner of the US, is typically influenced by the American economic landscape. However, Canada also faces its unique set of economic challenges. Although the country initially weathered the pandemic quite well, it must now confront unclear economic indicators. There are three differences that will probably mean the US will fare a little better than Canada over the next 12-18 months. One, the larger size and greater diversity of the US vs Canadian market will allow it to weather looming economic challenges. Two, during the pandemic Americans and Canadians both built up a pool of unspent savings. As these funds have been spent, post pandemic, they have contributed to inflation which makes the interest rate hikes less effective. The Canadian excess bubble of savings is projected to run out early in 2024 while the larger US pool should last a little longer. Three, while Canadian mortgage rates renew every 5 years meaning half of Canadians with mortgages are feeling the tightening effects of higher rates as they renew their mortgages. The US has 30-year mortgage rate locks meaning they are again less sensitive to interest rate hikes. Canada's economic well-being relies on global demand for its natural resources, including oil and minerals. Additionally, concerns are emerging about the housing market, especially in major cities like Toronto and Vancouver, where a potential bubble is being observed, prompting policymakers and economists to take a closer look. Fluctuations in global commodity prices have introduced uncertainty into the Canadian economy.

As the Bank of Canada strives to balance interest rates to control inflation and prevent overheating, concerns are growing about their potential impact on household debt and the broader economy. This has led to debates among economists about whether Canada is heading for a gentle economic landing or a more challenging one.

While it is imperative to “pay attention” to what is going on around the world, most of our partners continue to focus their time and research on the health of the individual businesses. We have spent many hours in conversation with analysts and portfolio managers. They have decades of experience and come from varying backgrounds including The Bank of Canada and various pension plans, private equity and mutual funds. We rarely heard mention of the war in Ukraine or the Israel-Hamas War unless it specifically affected a business they were researching. These “macro economic” situations, although heart wrenching often have very little impact on a specific business. While the share price may fluctuate in the short-term the underlying business are best of breed and are specifically selected to thrive over the longer term. Our partners and your portfolios are positioned conservatively to navigate the next twelve months prudently, all while remaining prepared to take advantage of the eventual market rebound once inflation comes under control and interest rates begin to fall.

In conclusion, the interconnectedness of the global economy underscores the importance of staying informed and adaptable as investors. The uncertainties surrounding economic indicators in the US, Canada, and the world necessitate vigilance and collaboration among policymakers, business leaders, and individuals to make informed decisions.

In times of uncertainty, it's crucial to keep the bigger picture in mind and ensure you have the resources necessary to reach your financial goals, much like preparing your vehicle for a long journey.

Health, Happiness & Success

Deb, Kelly & James

10th Annual Helping Hands Scholarship

Helping Hands Scholarship (the “Scholarship”) was established by six colleagues. Financial advisors ‐ Deborah Kohlsmith, Gary Elder (recently retired), Kelly Wood and Alfred Redmann of Investia Financial Services Inc. (Lifeview Financial) and Investment Advisors ‐ Shane Nixon and Kim Seipt of IA Private Wealth (all are the “Founding Advisors”). In addition, the Scholarship receives generous donations from Mark Rocklin, Regional Vice President –Ontario of Investia Financial Services Inc. and Stacie Fischer, Regional Vice President of IA Private Wealth.

The intention of the Founding Advisors when establishing the Scholarship was to encourage and assist young people to pursue post‐secondary education. We believe that post‐secondary education is the foundation to a better future and we are delighted that we can continue to help young people realize their full potential.

This year, the Helping Hands Scholarship will consist of two cash awards & a special 10th Anniversary award:

1st place ‐ $3,500 cash award

2nd place ‐ $2,500 cash award

10th Anniversary Special Award (to be randomly selected) - $500

Applicants for Scholarship monies must meet certain criteria – see below.

Selection Criteria:

• Applicants for Scholarship monies must (i) be entering a 1st year undergraduate University or College program or be an Apprenticeship student, starting their program any time during 2023; and (ii) be an immediate family member (specifically ‐ son, daughter, niece or nephew, stepdaughter or stepson, or grandchildren are eligible) of one of our current clients.

• Applicants must submit an essay entitled “My Life Goals” which should be between 2000 and 2500 words in length (please include the word count) and should address the following elements/questions: (i) Tell us about yourself and your community involvement; (ii) What inspired you to choose your career path or area of study? (iii) What do you hope to achieve in your career with your education?

• NOTE: your essay should be the correct length and touch on each of the areas mentioned above.

• The essay should ONLY be submitted to the following email address: helpinghandsscholarship@gmail.com and should include the following information at the very top of their essay ‐ student’s name, who the student is related to (and the respective advisor), mailing address, email address, phone number, name of school the student is attending, and the name of the programme they are enrolled in (all are mandatory).

• Only one application per family will be accepted in any given year.

• Proof of enrolment and proof of attendance as a full‐time student will be mandatory (confirmation of payment and semester schedule would be required to be submitted) prior to the student(s) receiving any Scholarship money. Once we have determined the winners, we will request this information be submitted within a timely manner to be eligible for the award(s).

Selection Process:

• The essays will be submitted by email to helpinghandsscholarship@gmail.com – they will be immediately numbered and made anonymous. The selection committee (comprised of the Founding Advisors) will review the essays and rank them based upon the following factors: (i) Proper essay format, spelling and grammar; (ii) Content of the essay relevant to our established criteria; (iii) Creativity and inspiration and (iv) Demonstration of leadership & community involvement.

• The Founding Advisors will be responsible for choosing the ‘winning’ submissions by a majority vote.

• The presentations will be made at a pre‐determined location and time and there will be a photo opportunity for our partners as well as the recipients and his/her parents or grandparents. The winning submission and photo(s) will be included on our websites and in upcoming client communications (written permission will be required to include the winning submissions in any client communication or publication – this is a mandatory component of the Scholarship).

NOTE: Immediate children of the founding advisors and their employees are not eligible for this Scholarship.

Application Deadline:

• The deadline for submissions will be August 15th, 2023 and the recipients of Scholarship monies will be contacted by email and/or phone no later than August 31st, 2023. The awards will be presented to the winners at a convenient time in the near future.

We are looking forward to receiving submissions. Best of luck to the students who will be participating. Should you have any questions regarding your submissions please don’t hesitate to reach out to us.

Health, Happiness & Success!

Deb & Kelly

Helping Hands Scholarship is a charitable initiative organized, funded and administered by Deborah Kohlsmith, Gary Elder (retired January 2023), Kelly Wood, Shane Nixon, Alfred Redmann and Kim Seipt in their individual capacities. Helping Hands Scholarship is unrelated to Investia Financial Services Inc. and IA Private Wealth, which are wholly owned subsidiaries of Industrial Alliance Insurance and iA Financial Group. iA Financial Group and its related and affiliated companies have no liability for Helping Hands Scholarship.