Fall Update 2019
Mapledene Financial Group, Markets, Politics & More
Last year at this time, we wrote to you concerning declining market conditions at that time. Our message then as it always has been is that ‘this too shall pass’, which indeed it did. Those late year declines made for some scary headlines, but they also paved the way for much better markets and investment returns that we have seen during 2019.
We have been in our new office for several months now and are finally feeling settled. Our new location is more central, easier to get in and out of and projects an image that is more aligned with our private client experience. Erin is doing a great job at getting to know our clients and setting up appointments for Brendan and I. With new routines set for all of us, we are seeing more clients in a typical week than previously. We are grateful that Erin enables both of our days to be much more productive. You will notice that we are now using an automated phone system. For your reference, here are our extension numbers.
Erin Boyle, ext. 235
Jamie Hodgins, ext. 236
Brendan Colafranceschi, ext. 237
We continue to be amazed by global markets with all the recession talk, and continuing doom and gloom. Financial press seems to report mostly negative news even though stock markets are up noticeably year to date. In fact, one would think that markets are down by a substantial amount this year again. Good markets are known as ‘bull markets’ which generally end with rising interest rates, euphoria and some sort of bubble-like conditions somewhere. Today’s economy is better characterized by doom and gloom, declining interest rates and no bubbles anywhere except for potentially Canadian housing. No-one knows when the next recession or downturn will come, whether it be this year, or next year or five years from now. However, we sure are doing a good job at talking ourselves into one.
Our clients have been asking what they can do to protect themselves in the event of a recession. We build investment portfolios to survive recessions keeping your money safe and growing in the good years. Since no-one knows when a recession will come, it is almost impossible to tailor asset allocation differently with the expectation that a downturn is at hand.
Your investments that you hold should be suitable for you in good times and in bad. Therefore, you don’t have to worry about bad times or what changes need to be made. We will look after all of that for you!
At Mandeville, we have access to products that are not correlated to stock markets and other ‘public’ markets. Our goal is to provide all clients with access to the highest quality public and private investments enabling us the opportunity to invest some of your funds away from ‘public’ markets. During periods of stock market decline, private debt funds have shown to reduce risk and to improve overall returns.
As I write this letter, we are in the middle of the Canadian federal election. In a few months, the United States primary elections will take place along with the federal election in 2020. I know many of our clients are anticipating the outcome of the 2020 US election along with perhaps a change in government. Our own federal election in Canada is fun filled with the normal pre-election headlines and drama. Who will form the next government, and what changes are coming all remain to be seen. Canada faces many issues including managing a rather large budget deficit, global competitiveness, energy policies including the newly created carbon tax, to build or not to build additional pipeline capacity, and how to deal with an ever-increasing protectionist neighbour to the south. We need strong leadership from our government with a plan to resolve many of these issues in the future.
Year End and Income Tax Reporting
The upcoming income tax season is right around the corner again. We want to remind you to call us if you need assistance of any kind. We want to make sure you have all the necessary tax slips, forms and information before you file so that you may file accurately. Feel free to call Erin, Brendan or myself for any assistance during tax season. We are always here to help!
In summary, global market conditions are stable. While there continues to be many threats to the economy from trade wars to politics, and while the global economy is definitely slowing down there doesn’t appear to be a recession that is imminent. In fact, with central banks lowering interest rates, and new trade deals being finalized we may well experience an increase in growth in the period ahead. We believe that proper asset allocation, that includes both public and private investments along with a proven track record and high-quality investments shall continue to reward our clients over the long term.
We wish you all a great fall as we get closer to the Christmas holiday season.
Thank you so much for your continued business and support.
Yours truly,
Jamie C Hodgins, CIM FMA FCSI
Senior Investment Advisor
Mandeville Private Client Inc. is a member of the Investment Industry Regulatory Organization of Canada and a member of the Canadian Investor Protection Fund.
This publication is solely the work of Jamie Hodgins & Brendan Colafranceschi, for the private information of their clients. Although the author is a Mandeville Private Client Inc. Advisor, he is not a financial analyst at Mandeville Private Client Inc. This is not an official publication of Mandeville Private Client. The views, opinions and recommendations are those of the author alone and they may not necessarily be those of Mandeville Private Client. This publication is not an offer to sell or a solicitation of an offer to buy any securities. This publication is not meant to provide legal, accounting or account advice. As each situation is different, you should seek advice based on your specific circumstances. Please call to arrange for an appointment. The information contained herein was obtained from sources believed to be reliable; however, no representation or warranty, express or implied, is made by the writer, Mandeville Private Client or any other person as to its accuracy, completeness or correctness.