August 2023 update

The financial news recently has been all about the interest rates as we have seen raises totalling 4.75% since March of 2022 while inflation has dropped from a high of 8% mid 2022 to its current 2.8%.

Despite this near record increases, central banks in Canada and the US seem committed to keeping rates high until inflation drops to 2%.  Most economist have factored in a recession starting this fall but most feel it will be a short and mild recession followed by lower interest rates next year.  

What does this mean for investors?

It should mean caution. Now is a good time to have a portfolio review to ensure your investment portfolio is in good shape to weather the storm. Products we recommend for a cautionary market are GICs and MIC shares. Both are very stable and provide steady income and growth with a track record of success in the great recession and other down turns in the economy.

If you would like to have a free portfolio review please contact one of our dealing representatives at Drake Financial Ltd.

Sincerely,
Norm Holmes - Vice President