Dear valued client,
Markets posted slight gains this week in light of the fact that Nvidia, one of the largest semiconductor manufacturers and an AI vanguard, posted outstanding second-quarter earnings: $13.51 billion in revenue. This positive development was somewhat nullified by remarks delivered from Federal Reserve officials in Jackson Hole, Wyoming stating the economy hasn’t cooled as expected warranting possible additional action. This portents (the strong possibility of) clouds of higher interest rates loom over the economic world.
Though inflation in sectors like energy has been volatile over the past 18-24 months, prices in housing have been rising steadily within the same timeframe. StatCan released a report indicating the average rental cost in Canada exceeded $2000 for the first time ever. It’s important to keep in mind this is an average, and that cities such as Vancouver and Toronto are at the upper end of this distribution. That being said, it is becoming increasingly difficult for those seeking to purchase their first home to save for a down payment.
**For those looking for the most efficient way to save for a first home, the Federal government has introduced the First Home Savings Account (FHSA). Please reach out to me to learn more.**
The most surprising (but not really surprising) development this week was a plane crash in Russia, killing 10 people onboard. One of the passengers was Yevgeny Prigozhin (remember him?), leader of the Wagner Group that led a revolt against Putin a mere 6 weeks ago. Coincidence…? I think not. Early intelligence suggests the crash was intentional and caused by an explosion. Putin, who had denounced the armed rebellion as “treason,” said publicly after the crash, “He was a man of difficult fate, and he made serious mistakes in life.” This is cold comfort for the victim’s family given the fact he is suspected of being behind the assassination. More details will undoubtedly surface in the weeks to come.
“Most of the trouble in the world is caused by people wanting to be important.” – T.S. Eliot
Have a terrific weekend,
PW
