The brokerage industry will soon say the recent drop in share prices are over and it will be time to buy.  They will say this like they always do during a market correction. They are correct if they can call the bottom, but it is pure luck when they do. If they do not say this the public will not buy, which means the brokers will make no money. 

There are numerous reasons to be nervous. One is the destructive Green movement killing profits and disposable income, the necessity of all economies. There is the war in Ukraine that can very easily expand to other parts of Europe.  We also have way too many choices of investment classes such as crypto’s and NFT’s backed by nothing but promotion.  There is zero investor protection in these markets because the lack of government oversight and no central exchange, making it impossible to get an accurate price. Real Estate prices are also a major concern.

Greens believe business must pay for everything wrong with the environment, even though there is very little, if anything at all. Businesses have always financed R&D.  It is profitable for them.  If they are not doing it themselves, they are paying universities and other companies to do it. Since Industrialization, businesses are the ones making the strides in cleaner technology and efficiencies. We should be allowing them to continue at a proper pace under realistic government expectations, just like past.

Greens cannot wrap their brains around all business costs are passed onto the consumer via pricing. Without doing so they would go broke.   This is why the Greens and Ottawa are a main contributor to high inflation.   All the unnecessary added costs they demand from corporations and taxpayers are a failure. It is shrinking disposable income and does nothing to lower carbon creation or CO2 levels in the atmosphere, nor will it ever.  It is natural for CO2 to increase and decrease over time. If Africa and Asia continue to increase their GDP and standard of living, the level of carbon creation will continue to grow. It will take a severe decline in global population, and for the economy to come to a standstill for this to occur.  At which point, everyone’s priority will be to keep food on the table. 

Ice cores provide enough evidence to prove that the level of carbon has lagged temperature over the last 800 years (the same length of time it has taken the ocean to warm). This means industrialization has done very little, if anything at all, to the level of CO2 today. Ice cores also prove that we are not in unchartered territory when one looks back at the history of the earth. There has been a tremendous amount of warming and cooling cycles. We are currently in the tail end of a cooling period, so warming should not be a surprise.  If anything, the current level of Co2 is too low by historical standards.  

From the business donating to the cause, to the organizations that promote the agenda, the Green       movement is self-serving and harmful to our standard of living. Rather than go after the biggest polluters like India and China, they come after us, the country with the largest number of trees on the planet and one of the lowest emissions out of any industrialized nation. Trudeau loves it.

Nobody is listening to Putin.  He has stated numerous times that he intends to restore the old Soviet Union.  If he succeeds in capturing more of Ukraine, he will use a false negotiation to restock their weak military.  Sadly, leaders are doing very little to help Ukraine, thereby aiding Russia. He could have been stopped in his tracks before he invaded, but there was not an effort from any country. They are still not doing anything meaningful to stop him. 

It is a unique period in history because China and Russia have a seat on the UN Council. Both countries do not care about human rights, yet they have veto rights on issues brought to the UN.  Until these two countries are booted from their seats, the organization will be pointless.  Countries, including Canada, should withdraw from the UN, but we won’t because our Dear Great Leader loves the photo ops with world leaders (corrupt or not) and has openly stated he respects China’s method of rule.  

It is estimated that $3t was wiped out of existence in the crypto market last month.  This has been one of the world’s biggest cons.  Tokens are backed by someone’s word.  Some say their token is backed by U.S. dollars.  These are called stablecoins and last month the stablecoin Lana fell from $1 to 3 cents. So much for stability! Some crypto platforms are experiencing a cash crunch and cannot return investors money because there are no buyers of the crypto. None of this is covered by laws to protect the public.   Fools and their money are soon separated. 

Housing markets are either overvalued or in bubble territory.  Not because incomes rose, but because interest rates fell. The price increases have occurred for so long that Canadians believe that prices never drop.   Unfortunately, prices today are slipping and will continue for many months to come.  We expect the average house price in Canada to slide to between three- and four-times household income, or under $500,000.  The average household income in Canada today is around $120,000.  

Currently most governments are the biggest risk to the economy. They are led by morons who choose not to plan or prevent, in favour of band aids at the expense of taxpayers.  Until this issue is resolved, the global economy will do nothing, at best, and all asset prices will adjust accordingly.

Today your financial goals are to eliminate debt, preserve capital and save for coming deals.  Invest only in insured one-year GICs and Canadian dividend paying blue-chip shares that yield between 4-and-6%. Some of these can be found in our recommendations in our newsletter.  Do not speculate for months to come.  Every asset class is going to be weak due to higher interest rates (we predict 5 increases by the end of next year).  There are going to be few buyers around for many investment classes.  This alone is the death of any market. Be cautious.