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800 Manulife Place
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Edmonton, AB
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September 2021 Update

Posted on: September 7, 2021


Money is a tool. It's something that supports your life!

With summer ending in the coming weeks, we are reminded of the many wonderful things to look forward to in the fall: 
1. Cooler temperatures (no A/C required!)
2. Fall colors (can't beat the River Valley at this time of year)
3. All things pumpkin and pumpkin spice related (does Starbucks stock price go up at this time of year?)
4. Back to school!

We're sure the days have gotten hectic for many as we fall back into regular work and school schedules. And as you drop off your children or grandchildren at their doors for a full day of learning, you may be wondering about their educational future. Look no further than this month's blog to start planning for educational endeavours! 

This month's Millennial Minute covers why you should be saving for your child's future. Ashley shares her experience with Student Loans and the stress that can come with trying to pay your schooling and living costs all by yourself, and why Millennials may not be as entitled as they are assumed to be.

Stephen's Technical Comments make mention of the inevitable bear market and how a 15 - 20% correction could be on the horizon. This is echoed in our Interesting Charts. 

We share the Portfolio Spotlight with Brookfield Asset Management and as always, we give a peek into our performance, and we remind you of our extended team members who are here to help you with every aspect of Wealth Management, from mortgages to estates, insurance to financial planning. 

We hope you find this month's blog useful and educational! The kids aren't the only ones who can learn something new this month! 

Interesting Charts & Tweets of Interest 

1) Be careful when you're too overweight in equities. What goes up will eventually go down...

2) Housing prices continue to rise in a wildly unchecked real estate market, with home purchases become even more unattainable by the younger generations. Do you think the real estate market will continue this trend? Will younger generations need to forgo the dream of home ownership?

Technical Comments

  • There has never been an 8 consecutive bull bars streak on the monthly chart in the 25-year history of the S&P 500. Therefore, September will probably have a bear body.
  • If it does, that should lead to a 2- to 3-month month correction of 15 to 20%.
  • If September is a bear bar, September could rally in the 1st half of the month and then sell off late in the month. The September 22 FOMC meeting is a potential catalyst.
  • The bears have not yet been able to create a bear bar or even a bull bar with a prominent tail on top for 6 months.
  • Until the bulls aggressively take profits, the bears will not sell.
  • The bears need to see one or more big bear bars before they will look for a 2- to 3-month correction.
  • Until then, traders will continue to bet on higher prices and that every reversal attempt will fail.
  • Sometimes in a buy vacuum, sellers stop selling until the price reaches a measured move or other resistance.
  • The next measured move is 4537 based on the height of the pandemic crash.
  • When a tight channel lasts an unusually long time, some bears who have been scaling in and using wide stops can no longer sustain the growing losses.
  • That occasionally leads to a violent short covering rally.
  • Once the last bear buys back his shorts, there is no one left to buy. Bulls see the big rally as an opportunity to take windfall profits.
  • With no one buying and bulls selling, there can be a climactic reversal down (blow-off top). That is what happened in the bond market last year.

The Portfolios

August was a busy month in the portfolio. We sold our Global Base Metals ETF, Vanguard All World Ex-Us ETF, CAE, Energy ETF, and TSX Capped Index ETF. We took profits and trimmed ATD, BAM, U, NKE, WCN, and our tactical XSP ETF. We added a new position in Nutrien, Brookfield Infrastructure, Royal Bank, Tourmaline Oil and Manulife Financial.  We are currently sitting with around 25% cash in the accounts.

Returns on our 60/40, 70/30, and 80/20 portfolios before fees: As of September 1, 2021



Portfolio Spotlight

Brookfield Asset Management Inc. is an alternative asset manager. Its operations are organized into its seven operating segments. Asset management operations include managing its listed partnerships (LP), private funds and public securities on behalf of its investors. Real estate operations include the ownership, operation and development of core office, core retail, LP investments and other properties. Renewable power operations include the ownership, operation and development of hydroelectric, wind, solar, storage and other power generating facilities. Infrastructure operations include the ownership, operation and development of utilities, transport, energy, data infrastructure and sustainable resource assets. Private equity operations include a broad range of industries and are mostly focused on business services, infrastructure services and industrials. Residential development operations consist of homebuilding, condominium development and land development.


The Millennial Minute

How many Millennials these days are still dealing with student debt? As tuition costs far surpass inflation, it is becoming increasingly difficult to be able to afford post secondary education. Is it entitlement to hope for a little help from our parents? Should parents be willing to assist with education costs? You can check out this month's article and decide for yourself! Click here to read more.


Planning Topics

Education Planning: Most parents hope their children will pursue higher education – and for good reason. A post-secondary education can prepare your child for a fulfilling career, lead to enhanced earnings potential and, ultimately, steer them on the path to a successful and rewarding life. However, if adequate savings are not in place for post-secondary education, your child could graduate with the added stress of carrying significant student debt before they’ve even secured their first job. Click here to read more into Education Planning.

Registered Education Savings Plan: At BMO Nesbitt Burns we can help you determine the best way to finance your child’s education and work with you to develop a savings program that helps meet your educational savings goals. Click here to read all about RESPs.

Taking Money Out of a RESP: This article provides information on how, and when, to withdraw funds from an RESP, as well as information on qualifying educational institutions and programs. In situations where the RESP beneficiary decides not to pursue post-secondary studies or leaves before completing a qualifying program, the subscriber of the plan must decide what to do with the money that has accumulated in the RESP. Click here to read about how to fully utilize your RESPs.


Members of our Planning Team:

We also would like to remind you that we have an extensive team of experts that we work with. From Business Succession, to Retirement Planning, even to mortgages, we have the professional advice and service you may be looking for!