Dear valued client,
Markets continued their tumultuous ride this week as investors contemplated the reality of higher interest rates as well as concerns on the energy front – especially in Europe. Markets gained roughly 14% over the summer, only to slide back down in the past month.
In energy news, leaks in two major pipelines transporting natural gas from Russia to Europe were reported this week. The Nord Stream pipelines have been the center of a tense energy standoff between Russia and Europe. As mentioned in a previous blog, Russia shut down the Nord Stream I pipeline in August, citing maintenance issues. On Monday, Scandinavian scientists detected two explosions in the Baltic Sea and following investigations from Denmark, Sweden and Germany in particular, accusations of sabotage have been made public. The theory is Putin is using this incident as payback for the economic sanctions imposed on Russia following their invasion of Ukraine. This will put further pressure on European energy prices, raising concerns as winter is on the horizon.
In travel news, the Canadian government has finally announced that it is lifting its vaccine requirement to enter the country on October 1st, as well as making the ArriveCAN app optional. Japan and Hong Kong followed suit and lifted their remaining travel mandates in the hopes that tourism will help buttress the global economy.
Hurricane Ian pummeled the state of Florida this week (and will continue this weekend) with 250-kilometer-an-hour winds – the strength of a category 5 storm. Roughly 1.8 million Floridians lost power, and insurance companies have predicted the storm caused between $20 and $40 billion in damages.
In medical news, a hopeful new Alzheimer’s drug called Lecanemab reportedly slowed cognitive decline in patients with early Alzheimer’s by 27% over 18 months. The rate of decline met the study’s target and offers hope to the 6 million people in the U.S. and 750,000 in Canada suffering from the wretched neurodegenerative disease.
In honor of Truth and Reconciliation Day here in Canada, I’d like to close with a Cheyenne proverb;
“If a man is as wise as a serpent, he can afford to be as harmless as a dove.”
Have a terrific weekend,
PW
