Monday morning briefing: Inflation skyrockets, investors shrug
This is the end of the Keystone XL pipeline. Over the past 16 years, the Gulf Coast-to-Alberta pipeline experienced many regulatory challenges and raised concern among climate change activists in both Canada and the U.S. The project came under increased pressure earlier this year when U.S. President Joe Biden pulled its permit. Out of options, TC Energy Corp. has finally pulled the plug on the project. The Alberta Government, which has a $1.3 billion stake in the project, will now try to recoup some of that investment.
Economic/industry news
U.S. inflation rate 5.0% in May: Inflation is hotter than expected, but it looks temporary and likely won’t affect Fed policy yet
BoC holds its benchmark overnight interest rate at 0.25%: Bank of Canada holds steady ahead of possible July taper
ECB holds its key rate steady at 0.00%: ECB projects brighter outlook but keeps “steady hand” on stimulus
Study shows green bonds held up well during the pandemic-led stock market volatility: Green bonds were a better safe haven than gold during the pandemic
No, the 60/40 portfolio is not gone: Is news of the 60/40 portfolio’s death greatly exaggerated?
Consider climate in your portfolio: Carney warns of climate exposure at RIA conference
Reasons for hope
U.S. relaxes travel warnings for a number of countries: U.S. eases travel warning for many nations as pandemic eases
Quarantine rules for people coming into Canada will ease in July: Travel quarantine rules set to ease as millions of Moderna vaccine doses expected
U.S. to donate millions of Pfizer COVID-19 vaccine to other countries: US has bought and will donate 500 million doses of Pfizer’s vaccine worldwide
Adapting your business
Ext. Marketing Inc.’s Richard Heft and Andrew Broadhead provide helpful advisor communications tips to Advisor Analyst’s Joseph Lamanna on Insight is Capital Podcast: Ep. 65 Richard Heft and Andrew Broadhead: The Ascendant Advisor
Don’t eat lunch at your desk: Where do you eat lunch?
Delivering to e-commerce lockers, not homes: The future of internet shopping might not be home delivery
Need-to-know trends in the private wealth industry: High-net-worth trends in 2021
Time to prepare for a significant rise in employee turnover: Employers, don’t fear the ‘great resignation’-it’s already here
Americans demand sustainable investing practices: Investors expect financial firms to embrace sustainability
Chart of the week: Inflation skyrockets, investors shrug
U.S. inflation rose to 5.0% year-over-year in May, which was the highest year-over-year increase since 2008. The core inflation rate, which excludes more volatile food and energy prices, rose to 3.8% in May, its largest year-over-year increase since the early 90s. But investors didn’t blink an eye and pushed equity markets higher on June 10, focusing not on the overall inflation rate increase, but on its composition. Specifically, growth in consumer prices was highly concentrated in goods benefiting from easing lockdown restrictions. While consumer prices may have more growth ahead, this report eased concerns that inflation would stall the recovery. Let us know what you think.
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
Hedge funds post strong returns in 2021: Hedge funds traverse volatility and inflation trends with biggest Jan-to-May returns in 25 years
Some parts of the U.S. real estate market are up, some are down: The risks and rewards in real estate investments
Forbes’ Fintech 50 for 2021: The most innovative fintech companies in 2021
News and notes (Canada)
BCI becoming more committed to its ESG intentions: BCI’s 2020 ESG report highlights sustainable bonds, investment guidelines
An investment to make transportation vehicles green: New investment in electric buses to create jobs and cut pollution
The MFDA to propose new standards to speed up account transfers: MFDA seeks to speed up account transfers
Many Canadian investors looking to change wealth providers: One in five Canadian investors plans to switch wealth providers: EY study