As we await the latest GDP data here in Canada (to be released on Friday), all signs are pointing to a slowing economy. Why is this important? Well to start, a weakening economy increases the likelihood of growing job loss, something we have already started to see, as Canadian companies have cut 75,000 jobs in just two months, half of them in manufacturing. In fact, TD Bank expects that another 100,000 Canadian jobs could be lost through the third quarter of this year, bringing the unemployment rate to a peak of 7.2% (Source: Financial Post, May 26, 2025). The expectation is that GDP growth will contract for both the second and third quarters of this year. If that occurs, we will technically enter a recession. In fact, many economists already surveyed, suggest that Canada is already in the early stages of a recession. This could spur additional interest rate cuts from the Bank of Canada to continue to spur the economy and spending. In fact, the prediction could be an additional three rate cuts for the remainder of 2025. Add to this, wage growth that could stagnate in a sputtering economy, and you have what will be a particularly challenging environment here in Canada. All this is also amongst a backdrop of the US tariffs- how we are withstanding tariffs could also be a prime factor in determining the state of the economy and the choices made by the BOC to keep the Canadian economy on track. Prime Minister Carney has his hands full, to say the least.
Keeping the portfolio diversified is important, especially during periods of volatility. It is also further evidence of why client portfolios are largely constructed with a heavier weighting to the US markets and companies.
The federal government is scheduled to release a federal income tax rate cut as of July 1st. We have an informative article that helps you learn more about it, how much it will save Canadian families and if it will be beneficial to them.
We have an interesting summary of the rising global bond yields and what this could mean for investors in the attached article.
New and innovative blood tests are being approved by the FDA in the US that are allowing for the detection of different cancers and diseases. We have an excellent article that highlights what some of these tests are and how less invasive they are becoming.
Why are non-alcoholic “mocktails” costing $15 these days? We have some insights for you in the attached article.
Did you know that the day you book a flight could save you a considerable amount of money. We have helpful tips for you on how to find a cheap flight anywhere in the article. Have a read!
Just a reminder that the possibility of another postal strike remains. As of this writing, postal workers remain on the job and negotiations remain ongoing. But the threat remains. If a strike does occur, it could delay things like client statements, government cheques etc.… Fortunately, we have an alternative for you! If you have not yet signed up for the client portal and would like to know how, please reach out to Deb ([email protected] or 226-647-4595) and she can help get you set up. The client portal is a great tool, and we have received lots of positive feedback regarding its ease of setup and its efficiency of use. The client portal can assist you in staying connected and managing your portfolio at any time. Please reach out if you need help getting set up for the client portal. Go to https://iaprivatewealth.ca/access to register.
Have a wonderful week everyone!
