Financial Library

A Tough First Half to 2022

It's been frustrating to have to report bad news in a number of newsletters this year but anyone who knows me knows that I won't try to gloss over things. 2022 has been a tough year with War in Europe, Rising Prices across the Globe, Labour Shortages, Supply Chain Issues, and now, Higher Interest Rates. It has been a very hard year to navigate through. In fact, it has been the worst first six months to a year on the Stock Market since 19621.

Portfolio Diversification

Looking back over the past few years, one thing is certain - we can never be absolutely sure what the financial markets will do at any given time. We can study charts and graphs, both historical and forecasted, we can consult with economic experts, business leaders, and government officials, we can look at inflation and interest rates, and still we cannot predict the markets with absolute certainty.

Rising Rates

As expected, the Bank of Canada raised Interest Rates again in early June. The BOC started adjusting rates with a 25 basis point hike in March this year. That was followed by another 50 basis point rate hike in April which was the largest single rate hike in over 20 years1. June gave us another 50 basis point hike so we are now at 1.25% higher than we were at the beginning of the year. These hikes will impact Variable Rate Mortgages and things like Investment Loans.

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