Dear valued client,
Markets dropped slightly this week as the war in the Middle East entered its second week. Palestinian causalities continued to mount in Gaza and even more Palestinians are gathered on the Egyptian border as water and supplies have been cut off from the region. President Joe Biden made a visit to Israel on Wednesday with the goal of showing his support for the Israeli government in its war against the Hamas militant group, as well as call on PM Benjamin Netanyahu to allow humanitarian aid to enter Gaza.
What is the road to peace? I have yet to hear a plausible answer.
On a positive note, Canadian inflation came in at a lower 3.8% in September compared to 4% in August. The decline was a result of lower prices of goods and services including travel and some grocery items. Additionally, the Canadian Real Estate Association reported home sales dropped by 1.9% in September. This marked the 3rd straight month of home sale declines, suggesting demand may be softening. The BofC will take these numbers into consideration and likely hold interest rates steady at 5% in next week’s meeting.
Other interesting news:
- U.S. retail sales for September were up 0.7% and up 3.1% compared to a year ago. This, coupled with the fact that unemployment remains at a low level of 3.8% still leaves another rate hike on the table – likely during the Fed’s December meeting.
- Tesla stock fell more than 9% this week after the company posted worse-than-expected earnings in Q3.
- 5 new sports have been announced for the 2028 Summer Olympics in L.A.; cricket, flag football, baseball/softball, lacrosse, and squash.
“It is not enough to win a war; it is more important to organize the peace.” – Aristotle
Have a terrific weekend,
PW
