Hello
The market got a jolt this week with a US Debt downgrade by Fitch and Jim Thorne provided some comments on that decision.(attached).
Jim was also in the G&M today (attached) and his piece is titled “BoC’s policy position could have catastrophic consequences”. It is obvious that the pain being created with these higher rates is building and government spending that never stops has some generational consequences. Jim closes with some recommendations.
David Rosenberg is staying with his recession call; he has gone through these calls before when it took more time to work out.
The brilliant Jeff Currie provided an update on the oil markets, and he keeps with his bullish thesis. Also, the Nuclear Energy sector is getting out of the ‘doghouse’ as the Financial Post explains.
Speaking of another narrative changing, the Financial Times had a piece on how it is in the ESG arena. I mentioned last week how the ‘European Narrative’ on energy is moving to a ‘China/India/Africa Narrative ‘and recent events in Niger is showing how quickly that is happening. (France is getting a wakeup call as people in Niger want electricity)
To keep on this energy theme and to help explain these narrative changes, Smarter Markets had the former energy head at Golman on and Arjun Murti is very interesting.
Steve Saretsky provided an update on the housing and mortgage markets. He questions, like many, about our immigration policy with such challenges in the housing sector. He also does not think highly of our new minister in charge.
It seems that many governments are forcing consumers to electric this and that and especially in BC. Recently there has been major issues with the US’s largest grid and it is reminder that we have to make sure we have the capacity (at a fair price) in the future.
To close, check out what a gentleman does in South Dakota. I am not great with heights so I am not sure if I could do what he does, even for $20,000 a climb to change a lightbulb.
Have a great long weekend!
David and Amy
Number 1 - Fitch downgrades US long term debt to Aa from AAA.
“High Debt levels, High interest rates, low growth ..” Jim Thorne…more comments attached.
Number 2 – BoC policy position could have catastrophic consequences – Jim Thorne
The Bank of Canada (BoC) is teetering on the edge of a potentially disastrous policy mistake. The inflation shock is now over. Inflation rates have declined dramatically during the past year, and there’s no solid evidence to suggest Canada’s economy is overheating.
Number 3 - David Rosenberg: My recession call has the haters out in force, but I've been here before
Talk of a ‘soft-landing’ has emboldened some, but there are reasons to be wary of over-valued U.S. equities.
https://financialpost.com/investing/recession-calls-haters-force-been-here-before
Number 5 - Nuclear energy out of the doghouse as Ontario taps power source to meet demand surge
Plans to expand existing plant and add three small modular reactors to a site where another already being built.
https://financialpost.com/commodities/nuclear-power-canada-meet-demand-surge?r
Number 7 - Arjun Murti, Former Head of Equity Research on Energy Sector at Goldman Sachs, Partner at Veriten, & Publisher of “Super-Spiked” on Substack
“CO2 may be all you care about, but until you provide energy for all, you’re not going to get the CO2 reductions that you want.”
https://www.smartermarketspod.com/summer-playlist-2023-episode-2-arjun-murti/
Number 8 - Steve Saresky - Same Faces, Different Places
Zero accountability. Anyways, we now have a new housing minister. His name is Sean Fraser, the same guy in charge of immigration. The same minister who ramped up immigration to mind blowing levels in the midst of a housing supply crisis. He is now responsible for fixing the problem he helped create. Yes, the arsonist has become the firefighter.
Number 9 - Largest US Power Grid declares emergency for 2nd day
PJM Interconnection is being saved by natural gas, coal, and nuclear power generation as temperatures surpass 100 degrees Fahrenheit across the Mid-Alantic.
We hope you found the Top Ten interesting this week, and are looking forward to another selection of articles, stories, and commentary next week. If you know of anyone else who would be interested in receiving our weekly note, please let me know.
Schneider Wealth Management is a trade name of Aligned Capital Partners Inc. (ACPI)* – ACPI is regulated by the Investment Industry Regulatory Organization of Canada (www.iiroc.ca) and a Member of the Canadian Investor Protection Fund (www.cipf.ca). David Schneider is registered to advise in securities and/or mutual funds to clients residing in British Columbia, Alberta, Manitoba and Ontario. This publication is for informational purposes only and shall not be construed to constitute any form of investment advice. The views expressed are those of the author(s) and may not necessarily be those of ACPI. Opinions expressed are as of the date of this publication and are subject to change without notice and information has been compiled from sources believed to be reliable. This publication has been prepared for general circulation and without regard to the individual financial circumstances and objectives of persons who receive it. You should not act or rely on the information without seeking the advice of the appropriate professional.
Investment products are provided by ACPI and include, but are not limited to, mutual funds, stocks, and bonds. Non-securities related business includes, without limitation, fee-based financial planning services; estate and tax planning; tax return preparation services; advising in or selling any type of insurance product; any type of mortgage service. Accordingly, ACPI is not providing and does not supervise any of the above noted activities and you should not rely on ACPI for any review of any non-securities services provided by Schneider Wealth Management. Any investment products and services referred to herein are only available to investors in certain jurisdictions where they may be legally offered and to certain investors who are qualified according to the laws of the applicable jurisdiction. The information contained does not constitute an offer or solicitation to buy or sell any product or service. Past performance is not indicative of future performance, future returns are not guaranteed, and a loss of principal may occur. Content may not be reproduced or copied by any means without the prior consent of the author and ACPI.
