The Ukraine Invasion, History and the Stock Market Impact
This war is a human tragedy and breaks the world order that has held since the end of WW2, as did the Korean War and Vietnam War. All these wars were fought on the edges of the East/West political divide.
Ukraine has been part of the East for all of modern history until the removal of the last Russian puppet president, Viktor Yanukovych in 2014. Restoring a Russian puppet has been Putin’s focus for the last decade. His population is also suffering from a rapidly declining standard of living, and he must distract them. Russia spends 4.3% of its GDP on the military, the third-highest globally and ahead of the U.S at 3.7%. This has punished the population’s standard of living. Guns or Butter is the economic expression for this and refers to a governments’ allocation of military spending versus civilian spending. Putin may end up like Gorbachev, with an economy crushed by military spending and a very unhappy population. Putin’s only hope is Vodka and its tempering the enthusiasm for protest. Putin does have higher oil prices, decent foreign reserves and perhaps a supportive China on his side. Read
It is always a good idea to review your accounts to ensure you are achieving the most tax savings available to you each year.
A few accounts that you should consider, if you do not already have them, include:
These tax-free accounts are ideal for all Canadian residents. They are very flexible for both short and long-term investors. If you have non-registered savings, there are very few reasons to have unused contribution room in your TFSA. The earlier in the year you transfer money to max out your TFSA, the earlier your gains are protected from tax.
Contribution Deadline: None
Contribution Limit: $6,000 for 2022.
If you have not contributed to a TFSA before, you will have $81,500 in unused contribution room provided that you reached the age of at least 18 in 2009. Read
Thoughts on the Market: January Edition
2022 Market Outlook
Written by Jamie Murray, CFA
Following a busy January around MWG headquarters (and several rewrites), we present our 2022 outlook in conjunction with our January Portfolio Update. January 2022 was the month “Buy the Dip” died; it was a strategy that had worked endlessly for three years save for the COVID-induced drawdown in March 2020. Both selloffs penetrated the negative 10% levels. Equities did recover off their lowest levels, thanks to two strong days back-to-back to close out the month. Bonds also fell in January, with a 4% fall in the 20-year Bond ETF. There were few hiding spots beyond value stocks.