Financial Wisdom

July 2022

The Fed "Put" Revisited

When investment markets officially hit "Bear market" territory in June 2022 - while Central Banks in North America and elsewhere were continuing to raise interest rates - questions began swirling about whether the US Federal Reserve (Fed) would once again rescue the markets by exercising the famous Greenspan "put"!

This is the move whereby the U.S. Fed (as leader of the global Central Bank pack) rescues the US economy by quickly cutting interest rates and printing more stimulus by way of Quantitative Easing or similar tactics. The Fed has taken this action several times during the past 30 years or so when...

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Portfolio Diversification

Looking back over the past few years, one thing is certain - we can never be absolutely sure what the financial markets will do at any given time. We can study charts and graphs, both historical and forecasted, we can consult with economic experts, business leaders, and government officials, we can look at inflation and interest rates, and still we cannot predict the markets with absolute certainty.

But it’s that uncertainty that makes investing in the markets so profitable. Without risk there would be low to no return on your investment. It’s how risk is managed that becomes important in a long-term investment strategy.

Portfolio diversification is a major key to managing risk, and is best practiced before it becomes a necessity. By the time the average...

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Incapacity Planning for Aging Parents

Almost 750,000 Canadians are living with some form of dementia1. The personal and financial challenges can be devastating for elderly individuals as well as for the adult children who care for them. Daniel, 63, knows this story all too well.

"It was about five years ago when I started noticing dad’s mental decline. As it wasn’t long after mom had passed, I chalked it up to grieving, but when his forgetfulness escalated, my siblings and I grew worried." Since Daniel lived nearby, he assumed responsibility for his dad’s care. A Gerontologist confirmed it was Alzheimer’s. This was both devastating news and also a strange relief. "Once we got dad’s diagnosis, I was contacted by a social worker who urged me to take care of legal and financial matters soon while dad was still competent to make...

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Henry David Thoreau

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