Weekly "Focus" and the Puzzling GST Holiday

Most weekdays, after walking our dog Luna, I zip over to the nearest Tim Horton’s to pick up a coffee and tea to bring home. This week I realized the cost has dropped from $4.58 to $4.06, saving me 52 cents. This “incredible” saving is a result of the Federal government’s 2-month GST holiday on certain items. As many of you know, I do jigsaw puzzles (see some recent ones below), and the GST holiday has been extended to these as well. At a time when our last federal deficit was a greater than expected $62 billion, I do not support “vote buying” measures that will lead to even more debt, especially when our federal debt sits at approx. $1.2 trillion thus creating a greater burden on all Canadians. All of this has weighed on the Canadian dollar, now hovering just below 70 cents to the US dollar - boy I sure hope it doesn’t get to 52 cents!

 

 

This week’s "Focus" from our economics team is attached.

 

Have a great weekend and best wishes for a happy and healthy new year! Our next “Focus” weekly note will be circulated on January 3^rd.

 

Brad

Senior Portfolio Manager and Senior Investment Advisor