August 2024 Update

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

Bank of Canada cuts key rate as expected to 4.5% - strikes more of a balanced tone.

 

Our Portfolio Management Approach

*We hope you're still listening to our podcasts! As the summer reaches its end, we will have new episode to release. Stay tuned!*

 

We believe that risk management is not a choice, but a necessity. While we cannot control how much downside the market provides during a correction, we can control how much of the downside your account receives. We aim to avoid 60% or more of the decline in any significant downturn. Without our process, there is a good chance you will experience 100% of the downside from the market. We will help you navigate the risks and rewards of the market so that you can stop worrying about your money and start living your life.

 

Transactions

At the start of July, we trimmed out index exposure in the SPY, QQQ, XSP, ZQQ and CGL. We took profits on our Stelco position as it was bought by another steel company for a 50% profit. We initiated a small position in Dream Industrial Reit. This decreased our overall equity position by 8%.

As of July 31, 2024, we were around 16% in cash, 18% in bonds and 66% in equity.

 

Returns on our 60/40, 70/30 & 80/20 portfolios before fees:

 

Interesting Charts

 

Technical Comments

https://www.brookstradingcourse.com/price-action-trading-blog/

• The July monthly S&P 500 candlestick was a bull doji bar closing slightly below the middle of its range.
• Last month, we said that traders will see if the bulls can create another breakout into new all-time high territory in July or will the market start to stall around the current levels and begin the pullback phase.
• The market made a new all-time high in July but reversed to close below June’s high.
• The bulls got a strong rally starting in October in the form of a tight bull channel.
• They got a strong leg up completing the wedge pattern (Jul 27, Mar 21, and Jul 16).
• They hope that the market has entered a broad bull channel phase which will last for many months.
• They want the current pullback to be sideways and shallow (filled with weak bear bars, bull bars, doji(s) and overlapping candlesticks).
• They want the pullback to form a higher low or a double bottom bull flag with the April 19 low, followed by a resumption of the broad bull channel.
• At the very least, they want a retest of the July 16 high, even if it forms a lower high.
• If there is a deeper pullback, they want the 20-month EMA to act as support.
• The bears want a reversal from a higher high major trend reversal, a large wedge pattern (July 27, March 21, and Jul 16), and a micro wedge (May 23, June 28, and Jul 16).
• They see the 3 sideways candlesticks (Mar, Apr, and May) as forming a possible final flag of an extended rally.
• They see a possible blow-off top forming and hope to get a deep pullback within a few months. The pullback phase may have started in August.
• They need to create a strong bear bar in August with follow-through selling in September to increase the odds of retesting the 20-month EMA.
• Since July was a bull doji bar closing slightly below the middle of its range, it is a neutral signal bar for August.
• The rally has lasted a long time and is slightly climactic.
• Traders are looking for reasons to take profits and will only look to buy after a deeper pullback.
• Odds slightly favor the sideways to down pullback has started.
• Traders will see if the bears can create a strong bear bar in August or will the market trade lower (as it did now) but reverse to close with a long tail or a bull body by the end of the month.
• Odds slightly favor the pullback to be minor.

Planning Tip

Financial Elder Abuse

It’s everyone’s nightmare: someone convinces a loved one to hand over the financial reins, invest in a“project” they believe in or help them out in an “emergency” scenario, and by the time they realize something isn’t right, a lifetime of hard-earned money has disappeared. While anyone can end up in this situation, it’s particularly upsetting when the victim is an older adult because they are considered to be a more vulnerable population.

Click here to read more!

 

Millennial Minute

Ashley here, with an article to share regarding the importance of estate planning and organizing your final wishes, regardless of your age. 

Younger generations, especially, feel that creating their will, personal directives and powers of attorney at such a young age is nonsensical and a waste of their very limited funds. However, we need to remember that no matter what age you are, life is a gift and no day is guaranteed. Ensuring you have your final wishes in order, regardless of your age, will make the process of dealing with your affairs easier for your loved ones who are already dealing with a major life event. Being sure your affairs are in order so those you leave behind have less stress while they are processing your departure from this world is probably the biggest act of love someone can do. 

Please don't put off your estate planning. No matter how little you might think you have, there is work to be done when you're gone, and making it easy on those who do the work will help to bring closure to those you leave behind.

Click here to read more!