When will the US Catch a cold?

March 9, 2015

It’s said when the US catches a cold, Canada gets the flu – or something like that.

Canadian and the world must pay attention to the US economy as it continues to be the largest single economy in the world with over $16Trillion dollars traded annually. The recovery experienced since the 2008 financial crisis is in its 7th year so our thoughts naturally turn to when we may experience the next recession.  Below are links to two informative articles on this topic:

Ben Carlson gives us an excellent perspective on when this might occur and the importance and necessity of recessions.

Fidelity’s Jurrien Timmer provides a history lesson and further thoughts regarding the US economy and markets.

“Long-term investing is about character, about depth of vision and the cultivation of patience, about who you are and who you’ve made yourself to be.”

 —Lowell Miller, in his book “The Single Best Investment”

Myths of Canadian Household Debt

The message we get regarding the indebtedness of an increasingly greater number of Canadians may not be the case.

The article below refutes four myths about Canadian debt.  The one area of concern is the 12% of Canadians that have more debt than assets.  I see this an the unfortunate result of low interest rates, a free economy, the ensuing marketing messages to over spend and, frankly, lack of discipline and financial literacy.   What I have not been able to confirm (but suspect) is 12% the standard number of Canadians who have always had more debt than assets which the economy is able to manages – just like the average bankruptcy ratio.

Link to Article

Wealth Transfer – Are you and your children prepared?

The Baby boomers are beginning to experience one of the greatest transfers of wealth the world has seen.  The generation that experienced the depression and the second world war and learned to save are transferring their wealth to a generation that experienced the cold war, Vietnam, the Beatles and the Rolling Stones and global terrorism.

The Baby Boomers worked just as hard as their parents and, had as much opportunity and surpassed their parents in affluence – or at least the feeling of it.  Their children grew up with cell phones, the internet, soccer, hockey, piano, summer camps, family vacations and potentially an expectation that these things came pretty easy.

I know that I am concerned my kids won’t know how to handle the wealth they will receive if I don’t make it to 100 – (cause if I do, my last cheque will bounce)

With wealth comes responsibility and one of those is to prepare our wealth and our children for its eventual transfer.

The following is a great video (only about 5 minutes) that reviews the most important: Wealth Transfer Video