Market Commentary

Making Cents of the Markets

Check out this weeks Making Cents of the Markets on CKNW where we discussed the ins-and-outs of generating income in retirement, including CPP, OAS, and how to plan your cash-flows.

Listen here.

 

Beyond the Markets

If there’s a dad or dad figure in your life you want to treat this weekend, there’s no better way to celebrate than with some delicious food! Here are some of our favourite bites for a Father’s Day feast.

Torafuku’s 5 Course Father’s Day Feast – this tasty meal-set is packed with short ribs, summer vegetables, and delicious desserts and is enough to fill both you and dad up for the entire weekend! Available for take-out or dine-in options view the full menu here.

Burgerland’s Burger-Kits – trade in the grill for a griddled smash burger stacked in the style of a familiar fast-food classic with premium ingredients! These kits are perfect for an easy night of home cooking, and you can choose from 4 different kits here.

Beaucoup Bakery’s Buttery Sweets – one of Vancouver’s most appetizing bakeries has launched a limited-time menu, complete with a Father’s Day picnic, BBQ pulled pork croissants and an almond espresso chocolate bar. If your mouth is already watering, you can pre-order some treats now here.

 

Be in the Know

After a strong run to new highs, North American markets pulled back 1-2% this week. The US Federal Reserve stated that inflation is tracking ahead of their expectations which may lead them to increase interest rates in 2023, a year earlier than expected. This subtle change in expectations drove weakness in economically sensitive sectors, as investors fear that rising rates could weigh on growth in the future. The reality is that the reason for interest rates heading higher is positive in that the economy is recovering faster than expected, which is why any further weakness in markets is likely to be an opportunity to add to high quality companies within the strongest areas of the market.

Commodities continued to soften as the Chinese government took steps to cool rising prices by releasing strategic reserves to local manufacturers and fabricators. After a strong start to the calendar year, a summer pause in commodities is quite normal as we expect the rally to continue with the re-opening of the global economy supporting demand until some time next year. The US dollar strengthening contributed to this weakness though was positive for investors holding equities in US dollars as momentum looks to continue in the near-term.

In Canada we saw inflation increase 3.6%, in line with analyst expectations, rising to a 10-year high largely due to a low comparison base from a year ago. Much of the increase looks to be temporary due to gasoline prices though this will be closely watched and will impact when the Bank of Canada decides to increase interest rates in the coming years. In the US we saw retail sales decrease by 1.3% in May as Americans shifted spending to services as the economy reopens and travel picks up. Next week, we look forward to seeing updates on the Canadian consumer and global manufacturing.

 

Our Strategy

Our portfolios held in well when compared to markets as a number of our stocks within the technology, consumer discretionary, and real estate sectors were positive. We have been through similar environments in the past and remained disciplined as our stocks continue to trend higher over the longer-term.

Equity markets and many of our stocks are at key support levels as we have a plan to reduce our exposure to equities if weakness persists in the near-term. Our belief is that we are still in the early innings of the economic recovery and that any weakness is more of an opportunity to investors than a threat. This is why we are excited to see many strong dividend payers pull back as these will remain attractive with interest rates to remain low even after the Bank of Canada increases rates.

 

Visual of the Week

We wish all of the father figures out there a Happy Father’s Day weekend!

 

The comments and opinions expressed in this newsletter are solely the work of Pinkowski Wealth Management, not an official publication of Canaccord Genuity Corp., and may differ from the opinion of Canaccord Genuity Corp’s. Research Department. Accordingly, they should not be considered as representative of Canaccord Genuity Corp’s. beliefs, opinions or recommendations. All information is given as of the date appearing in this newsletter, is for general information only, does not constitute legal or tax advice, and the author Pinkowski Wealth Management does not assume any obligation to update it or to advise on further developments related. All information included herein has been compiled from sources believed to be reliable, but its accuracy and completeness is not guaranteed, nor in providing it do the author or Canaccord Genuity Corp. assume any liability.

CANACCORD GENUITY WEALTH MANAGEMENT IS A DIVISION OF CANACCORD GENUITY CORP., MEMBER-CANADIAN INVESTOR PROTECTION FUND AND THE INVESTMENT INDUSTRY REGULATORY ORGANIZATION OF CANADA