Matthew Lekushoff | www.matthewlekushoff.ca

MARKET UPDATE

Well, goodbye Summer, and hello Fall...or at least, it should be -----someone forgot to tell Mother Nature, methinks. This September, Southern Ontario has been way more summery than summer itself.

While it's generally been a poor year for Canadian equities, especially those in the energy sector, emerging markets have enjoyed some of the best year-to-date performance.

However, there's been a reversal of fortune these last couple of weeks -----the Canadian market, led by energy producers, has risen and emerging markets have fallen. They haven't come close to reversing their year-to-date results, but it's something to track moving forward, especially since conventional wisdom dictates emerging market stocks move in tandem with oil prices.

Although we've seen the overall GDPs of emerging markets become more consumer-based than ever before these last few years, it's important to not paint them in broad strokes and recognizes the difference between these developing countries. Factors that would have a big effect on China, for example, may not do much for South Africa or India.

FOOD FOR THOUGHT

"It is amazing how fast people learn when they are not insulated from the consequences of their decisions."
-----  Thomas Sowell

SMALL BUSINESS TAX CHANGES

Given the level of anger I'm seeing on my social media feeds, I thought I'd say a few words on the pending corporate tax changes proposed by the federal government. Although the government seems resolute to eliminate the perceived advantages of small businesses, due to the stronger-than-expected opposition, I suspect our worst fears may not come to fruition. But this is just my guess. 
 
That being said, if you are a small business owner or use a corporation for tax planning, you may want to keep a close eye on any announcement after the official consultation period ends on October 2. I may be wrong, but I have a feeling the government will want any changes enforced for the 2018 tax year, which wouldn't leave much time to make any adjustments.

IN THE REVIEW QUEUE

Antifragile: Things that Gain from Disorder  by Nassim Taleb: I listened to this book a few years ago and decided it warranted re-visiting. I wasn't disappointed. The third book in Nassim Taleb's Incerto series  provides a lot of new ideas that are applicable to both finance and economics, but also to personal life. As mentioned in my previous writings on Taleb, his style is blunt and bombastic. Despite this, I find his passion and willingness to bear the slings and arrows that come with this approach refreshing. If you have an interest in how the world works, I highly recommend the whole series. I've read or listened to each of the first three books twice, and will likely make it three times in the not-so-distant future!
 
How to Build a Company Where the Best Ideas Win  by Ray Dalio: Ray Dalio is not just a brilliant thinker, but also one of the wealthiest people on the planet. This TED Talk provides a quick look into his new book,  Principles  (which I'm very excited about), and how radical transparency and honesty have been integral to his success. As today's society is increasingly discounting the truth and facts in favour of opinions, feelings, and political correctness, his philosophy of having an idea meritocracy prevail is not only refreshing, but needed.
 
Everything You've Been Taught About How To Read a Book Is Wrong  by Taylor Pearson: This article outlines a better way of reading than what some of us have been doing.
   
The Bard Notes: Dealing with the future of success from the eyes of a modern day philosopher  by Ludvig Sunstrom: "I hope you will realize the importance of engaging in some sort of long-term practice related to the internet (sic). That means that you ought to engage in a hobby, practice a skill set, or get a profession related to the internet. Whether you realize it or not, the internet is a big deal, and it's only going to get bigger."
 
Jim Carrey: I Needed Color :  This documentary presents a different side to Jim Carrey.
   
The Side Hustle Economy: 25 Ways to Make Extra Dough  by Visual Capitalist:  The world is changing and more people are choosing to supplement their primary incomes, or have a number of income sources.

Damn Right!

I'm currently reading Damn Right! , which is a biography on Charlie Munger. Munger was incredibly focused on becoming wealthy as fast as he could-----  not for a luxurious lifestyle or to retire early, but rather for independence and humanitarianism. 
 
The independence part is fairly straightforward for me, as it's something I think about a lot. Everyone should have an idea of what their "number" is in regards to the amount of money they need to achieve complete financial independence. If you don't have one, feel free to reach out to me so we can discuss it. 
 
His second reason was less intuitive for me. Munger figured that once he became wealthy, he would become more useful to society by having the time and the means to support worthwhile causes. I've met a lot of well-meaning people who will have a fraction of the impact on society they could if they had just spent more time on their finances. 

OUR MYSTERIOUS PLANET
  • A team of researchers have found the oldest evidence of life on Earth right here in Canada! They examined 3.95-billion-year-old Labrador rocks that contain graphite appearing to come from living organisms. 

Matthew Lekushoff
416-777-6368
www.matthewlekushoff.ca


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