Matthew Lekushoff |
The U.S. Administration | Global Markets | TFSAs
Although it feels like January came and went in a flash, a lot has changed since we rang in the New Year.
Most notable, of course, was the inauguration of Donald Trump, followed by a number of controversial decisions and executive orders. With 9/11 being one notable exception, I can't remember another topic that has come up more in conversations with clients, colleagues, and other investment professionals.

Although we know things can change quickly, I think it's likely he and his administration will be top of mind for at least the next four years. Assuming this is the case, I'd like to remind everyone that obsessively consuming news about latest executive orders, judicial nominees, or legislative moves won't help to predict the future----- be it the global economy, stock markets, or geopolitical events. Case in point: the relatively unaffected markets during the days following Brexit or the U.S. presidential election results.
If the markets do become more volatile as a result of Trump, you'll probably see me writing about rebalancing portfolios more than I have in the past. We may even add or subtract positions with greater frequency as well.
Of course, this is all speculation. That is, the markets could even gently rise over the next four years. I'm not betting on it, but then again, if you told me interest rates would still be this low back in 2008, I wouldn't have believed it possible.

For the most part, January saw markets rising with values falling towards the end of the month, yet they still closed slightly positive. Most notable among our positions was gold, which performed strongly for us. Energy, however, had a great run since the end of the last February, but showed considerable weakness.

With the New Year, you can contribute another $5,500 to your TFSAs at least, but more if you didn't maximize your contributions last year. If you'd like to be sure how much of the lifetime $52,000 contribution room you have, you may want to  contact the CRA  to get the exact amount as they tend to be sticky about over-contributions.
The deadline for RRSP contributions is also coming up on March 1. The amount you can contribute before the deadline is on your  notice of assessment  that you would have received shortly after you filed taxes last year.
As always if you have any questions about any of this, or know someone who would like to receive these newsletters, feel free to contact me at any time.
In the review queue
The Undoing Project  by Michael Lewis: Michael Lewis has done it again! This brilliant book illustrates some of the most important theories on human misconceptions, while walking the reader through the complicated relationship between two of the 20th century's most influential psychologists. As a huge fan of Daniel Kahneman's  Thinking Fast and Slow , I loved the almost romantic story of how he and Amos Tversky came up with many of their ground-breaking theories that continue to influence many people today-----including myself.
The Candy Diet  by Seth Godin: A short, but pertinent article by the brilliant Seth Godin on the costs of society's increasing need for quick fixes.
The Book of Coach  by Seth Wickersham: Being Super Bowl week I thought something football-related would be appropriate. This ESPN article focuses on arguably the most influential coach of all time, Bill Walsh. Although incredibly successful, sadly, Walsh never let himself enjoy it. It's a reminder that sometimes there is more to life than winning.
Keep Your Identity Small  by Paul Graham: A poignant article from February 2009 on why religion and politics create so much disagreement. Although I'm not sure of the reason the author wrote it, I'd guess it's not a coincidence it was written shortly after President Obama's first inauguration.
Real Estate Bubbles: The Cities at Risk of Bursting  by Visual Capitalist: A graphical representation of the most expensive cities in the world. Spoiler Alert: A Canadian city tops the list.
Just for fun: The Super Bowl 


Matthew Lekushoff, CIMA

Financial Advisor 

Raymond James Ltd.


T: 416-777-6368 | F: 416-777-7020


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