Bill’s Blog | February 2, 2023
Well, another month flew by, and thankfully, January 2023 did not resemble January 2022, the worst start to the financial markets in 100 years! So today, I will keep this brief as I will provide deeper insights next week from the World Outlook Conference that Michael Campbell hosts annually with the fantastic experts he invites who share a wide range of investment topics.
Here are the keys things I have observed in 2023:
- As I forecasted in December, interest rates continued to rise in many countries. Canada just added another .25% and now sits at 4.5%. Will we get one or two more? Only time will tell. The US Fed will continue to raise rates in their next meeting in early February.
- Canadian Mortgage Rates: 5.04% five-year fixed plus & 6.25% on a variable rate plus. Remember, you need to qualify with the 3% hurdle rate.
- Geopolitical tensions continue to ramp up in multiple regions. The most concerning is Russia /Ukraine and the ongoing war between Iran and Israel.
- Expect inflation to continue to eat away at your income in 2023. Thanks to the combination of inflation and sharply higher interest rates, 22 percent of Canadians—and 28 percent of women—are “completely out of money,” an Ipsos poll commissioned by Canada’s Global News has found. October 2022
- The big question regarding the markets is, are we just experiencing another bear market rally in January or a turn in the market? Most analysts I follow daily believe we are just having a bear market rally. There is still a lot of data showing continued layoffs by big corporations, slowing sales, and many consumers who have burned through savings and are using credit to get by.
- Gold broke through $1900 US, and I believe we will see $2000 plus in the not-too-distant future. Central banks continue to purchase Gold at a record pace, and I believe something big is up. Silver hovers around the $24 US mark and has been consolidating for the last month (a positive sign). An excellent brief video (11 minutes) explaining why you might want to have Gold and Silver as part of your wealth:
https://goldsilver.com/blog/why-gold-silver-offer-more-than-economic-insurance/
- In 2022 we saw another colossal trend; 114 countries worked on pilot projects to create Central Bank Digit Currencies (CBDG). Many experts warn this is the next step in individuals losing their privacy and personal freedoms. The recent development of blockchain technology was to benefit humanity, but it can also be used to track and control people. In the next few years, we will see paper currencies disappear.
As always, I recommend you continue to educate yourself on financial matters. Consider taking my Wealth Foundation online course. Six lessons will teach you the fundamental principles of building wealth and developing a plan, as importantly, how not to lose what you work so hard to build! On Special $49 CA: https://fivefoldfinancial.ca/wealth-courses/
All the best in 2023,
Bill Westmacott, Owner
fivefoldfinancial.ca