November 6 2023

Investment Insights: A Glimpse into the Future of Your Portfolio

Dear Client's,


I hope this newsletter finds you well and thriving. I am excited to share some insights from the recent investment conference I attended. This event was an invaluable opportunity to connect directly with leading portfolio managers, providing a deeper understanding of the strategies driving our investment decisions.


At the conference, I had the privilege of engaging in private one-on-one sessions with these portfolio managers, gaining firsthand knowledge of the intricate decisions shaping our clients' portfolios. Participating in large and small open table forums also allowed me to hear directly from esteemed analysts and research teams, equipping me with crucial insights into current market trends and strategies for the future.


It's crucial for me to maintain the highest standards of professional development. While I am required to complete a minimum of 30 hours of continuing education annually to uphold my licensee, my commitment to you and all my clients drives me to exceed this, investing over 50 hours to stay at the forefront of market trends and evolving financial landscapes.


By fostering strong relationships with these portfolio managers, I aim to glean valuable, relevant information that can directly benefit our investment strategies. Your financial well-being remains my top priority, and these efforts reflect my unwavering dedication to providing you with the most informed and proactive financial guidance.


Thank you for entrusting me with your financial journey. As always, please do not hesitate to reach out if you have any questions or if there is anything specific you would like to discuss regarding your portfolio.


Wishing you continued success and prosperity,


Franco Caligiuri

Last Month in the Markets: October 1st – 31st, 2023

What happened in October?


The 10th month of 2023 provided significant uncertainty and volatility.

unnamed (2)

Many events contributed to the down-up-down-up-and-down-and up month for investors:


  1. September 30th / October 1st

Just as the month was beginning a stop-gap measure that extends spending for an additional 45 days was found to avoid a U.S. government shutdown.   CNBC and "shutdown"  CNN and "shutdown"


  1. October 6th

“Total nonfarm payroll employment rose by 336,000 in September, and the unemployment rate was unchanged at 3.8 percent”, according to the U.S. Bureau of Labor Statistics.  BLS release


  1. October 11th and 12th

On two consecutive days U.S. producer and consumer inflation data was released.  The Producer Price Index (PPI) increased 0.5% in September, down slightly from 0.7% in August.  Year-over-year prices advanced 2.2%, which is the largest increase since April. Consumer prices rose 0.4% in September, down from 0.6% in August. Over the last 12 months the Consumer Price Index (CPI) has risen 3.7%, which is the same reading as in August.   BLS PPI release   BLS CPI release


  1. October 17th

Canada’s CPI was lower than expected.  On a year-over-year basis consumer prices rose 3.8% in September, slightly lower than the 4.0% gain measured in August.  The slowing of price increases was led by travel serviced, durable goods, and groceries.  Gasoline rose 7.5% on an annualized basis, compared to August’s 0.8% increase.  Excluding gasoline, the CPI rose 3.7% in September.  CBC and CPI   StatsCan CPI release


  1. October 18th to 23rd  

The U.S. corporate earnings season began less than impressively.  The number of positive earnings surprises and the magnitude of the earnings surprises are slightly below the 10-year averages.  This is not the corporate profitability that markets wanted.  Factset and Q3 earnings


  1. October 25th

The Bank of Canada made a monetary policy announcement that kept the policy interest rate unchanged.  According to the press release, “Inflation has been easing in most economies, as supply bottlenecks resolve, and weaker demand relieves price pressures. However, with underlying inflation persisting, central banks continue to be vigilant.” This may provide insight into the Federal Reserve’s next announcement.  BoC Press Release      CBC and BoC


  1. October 26th

U.S. GDP grew faster than expected during the third quarter.  The annualized pace is 4.9%.  The expanding economy, and inflation above goal, may rationale for the Federal Reserve to tighten monetary policy by raising interest rates, but traders see that as unlikely. CNBC and GDP  BEA release


  1. October 27th

On Friday the Bureau of Economic Analysis released the Personal Consumption and Expenditures (PCE) price index.  In September, the most recent reporting period, the personal income rose 0.3%, and the PCE price index rose 0.4%.  Core PCE (excluding volatile food and energy) increased 3.7% on a year-over-year basis.  Core PCE peaked at 5.6% in early 2022, and has fallen steadily, but remains well above the Fed’s target of 2%.  The PCE is the Federal Reserve’s primary inflation indicator, the Personal Consumption and Expenditures (PCE) index will be reported, which was a few days ahead of the next U.S. interest rate announcement.  BEA and PCE CNBC and PCE


  1. October 31st

According to StatsCan, “Real gross domestic product (GDP) was essentially unchanged for a second consecutive month in August as factors such as higher interest rates, inflation, forest fires and drought conditions continued to weigh on the economy.”  StatsCan release


What’s ahead for November and beyond in 2023?


On November 1st, the Federal Reserve announced that it was holding interest rates unchanged.  The Federal Funds rate will remain in the range of 5¼ to 5½%.  Fed Chair, Jerome Powell, said that rate reductions have not been considered or discussed for the next interest-rate meeting in December.        CNBC and Fed release   Fed release and press conference


Regarding the war between Hamas and Israel, the focus of our practice will continue to be the financial futures of our clients and their families.  The situation in the Middle East will be continuously monitored for effects on local clients.

unnamed (3)