2024 Mid Year Update

Hello Everyone,

We hope the first half of 2024 has been good for everyone. The weather is getting nicer, and we can enjoy the outdoors.

On Wednesday, we saw what we have been anticipating since the beginning of the year. We anticipated that we would start to see rate cuts later in the year. In our last update we forecasted that “inflation would continue to moderate; the economy will hold up and avoid recession and central banks will begin to cut interest rates this year” (Feb 2nd, 2024).

So far, our forecast has been accurate and today Canada’s central bank has cut interest rates. The rest of the world seems to be heading that way as well. The U.S. had the strongest economy in the developed world. But they are now showing signs of cutting interest rates later this year as well.

Now with interest rates coming down, we expect to see the next part of our forecast to start. With rates falling, we will see money flowing back to high quality dividend payers. We think the market will have occasional rough patches, which is normal, but, overall, our strategy is set up for what is to come.

The only setback we could see is if inflation was to remain high. We do not anticipate this to happen, but we like to keep in mind what could cause issues so that we are ready for it. As of now we see inflation moderating over time and gradually reaching the central banks’ targets.

Our holdings have continued to see dividend income increases. Our portfolios have been resilient, and we have had a good start to the year. As the U.S rate cuts come into view, we expect that income investments will do well.
If you have any questions about your portfolio or overall markets, please feel free to reach out.

All the Best,

Your Tchabushnig Wealth Team.

This communication has been prepared by Alan Tchabushnig and expresses the opinions of the authors and not necessarily those of Raymond James Ltd. (RJL). Statistics, factual data and other information are from sources RJL believes to be reliable but their accuracy cannot be guaranteed. It is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. It is intended for distribution only in those jurisdictions where RJL and the author are registered. Securities-related products and services are offered through Raymond James Ltd., member - Canadian Investor Protection Fund. Insurance products and services are offered through Raymond James Financial Planning Ltd., which is not a member - Canadian Investor Protection Fund.