Market Commentary

Making Cents of the Markets

Many of us are eager to travel once again and see the world! On this week’s episode of Ready.Set.Retire!, Lori and Jon are joined by Robert Elmore, president of Cruise Encounters.

We discuss top cruises for families and retirees, big ships vs small ships, and all the improvements that have been made to the cruising industry lately. You should be booking your next big getaway today!

You can now find Ready.Set.Retire! on Spotify, Apple podcasts and Acast. Listen here or subscribe to us on your favourite streaming platform!

Listen now to the most recent Making Cents of the Markets on CKNW, where we discuss the bounce in markets after US inflation data came in lower than expected. Good news!

Also, Lori talks about some of the common signs that you may have a bad financial advisor!

Click to listen here.

Beyond the Markets

Richmond Sunflower Festival

The sunflower festival opens for the season on Saturday, August 12th until September 5th, 2022.

For just $10, you can enjoy over 8 acres of land with over 20 different varieties of Sunflowers and Dahlias to admire!

Click here to purchase tickets.

Be in the Know

“If you tell the truth, you don’t have to remember anything.” ― Mark Twain

Disinflation in da house

It’s amazing what a small reduction in inflation expectations can do for the stock market. Wednesday’s CPI data came in at a lower-than-expected 8.5% for July, while core CPI (excluding food and energy) dropped to a 5.9% annualized pace. Food prices went up a lot, but the key was gasoline prices dropping 7.7% from June. You’ll have to squint to see the improvement in this chart.

 

What didn’t require glasses, was the near 2% spike in Nasdaq and 1% jump for the TSX that morning.

Rental cars and used car prices have plummeted back down to earth (see charts below). Small improvements to air fares and energy have materialized, with hopefully much more to come.

 

From February to July, metro Vancouver median home prices have fallen 14.4%. According to RBC, the decline has only begun. They expect the deepest decline in 50 years. Desjardin Bank is predicting a more dramatic 25% drop.

Toronto prices are down 13% since March with a 3.9% decline in the MLS Home Price Index in July alone.

Bloomberg tabled the most expensive regions, ranking Canada 4th globally (see table below).Yes, sure, everyone is moving to Vancouver because it’s such an amazing place, etc. But the role of decades-long falling mortgage rates played in the housing price rise globally, is slowly being realized by the masses.

Our Strategy

Cool, Calm & Collected

As previously mentioned, several important cooler than expected inflation indicators were reported over the past week and had markets up and running on hopes this may persuade the Fed to take their foot off the rate hike pedal. On firmer footing in equity markets, our portfolios continued to advance as they have had a considerate bounce this week beating their relative benchmark.

We remained true to our strategy, as we continued to put cash to work after seeing positive catalysts are swiftly changing the direction of markets.

Over the past week we have continued to add quality names to our portfolios, such as Disney. Disney hit it out of the park (pun intended), as they reported better-than-expected subscriber growth for their streaming service Disney+. Combined with the company’s subsidiaries Hulu and ESPN+, Disney has over 221 million streaming subscribers. Netflix, a long-standing leader in the streaming space, now has about 220 million subscribers, according to the most recent tally. Disney has also had a successful quarter in their theme parks segment, bolstered by the post-Covid excess attendance, occupied room nights and cruise ship sailings.

We continue to focus on well established companies, that should lead in this current rally due to their ability to demonstrate encouraging growth prospects. Subsequently, we are always ready to act if conditions change, however for now, it looks like sentiment has changed and we welcome it!

Visual of the Week

Global supply chain is trending towards normalized territory, as long-lasting supply chain constraints continue to improve – bullish.

 

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