2021 Q4 Newsletter

The last two years feels like a biblical quote, in BC we have lived through floods, fire and pestilence. But we are still amazed by the ability of communities to come together and deal with these calamities.

May next year bring much needed relief to the world and that better things are in all of our futures.

Hopefully you will be able to gather with your friends and family over the holidays.

Our newsletter will focus on the following topics:

Beacon Wealth Update
The Media and its Role in Investing
Resiliency of the Human Race
Trains and Phone Screens
Holiday Recipes

Beacon Wealth Update

In the new year we will begin hosting online webinars about various financial topics. Our hope, is this will help enhance the level of service we provide you and give everyone an opportunity to hear from the entire Beacon Wealth Team. Dates on the first session will be disseminated in the new year.

The Media and its Role in Investing

This year we saw many different headlines about the effects of political policies, Covid-19 variants, and economic concerns such as “tapering”, interest rate rises, supply chain issues and inflation on the markets. Unfortunately, many were negative and caused investors to be fearful of what lies ahead.

Why do these themes seem to happen so frequently in the media: Fear Sells ([if it bleeds it leads] whereas optimism is “fluffy”).

Given we are close to the holidays, we wanted to offer an alternative viewpoint to help provide some perspective to the headlines above:

Rising interest rates environments:
- Indicates economic growth
- Shows that the country can stand on its own two feet without the intervention of capital from central banks
- Provides opportunities for active investors as to buy market dips caused by negative or fearful news
During 5 of the last 7 rising interest rate cycles, the stock markets have generated positive returns. Technology in those instances outperformed the broader markets.
In 2013, during testimony to the US Congress, the Chairman of the US Federal Reserve (central bank) indicated that at some point in the future they would reduce (taper) the amount of stimulus provided to markets (in the aftermath of the mortgage crisis of 2008). This caused stock markets to drop 5.8% that day. Three months later when tapering began, markets were back up over 10%.
- This illustrates the markets tendency to kneejerk reactions to news, and it takes time for it to focus on reality.

At Beacon Wealth Partners, we feel it is important to have a disciplined investment process. Our job is to filter out the noise and focus on the facts. Contrary to what has been in the headlines, the stock markets have had an excellent year, fueled by record company earnings, improving economic conditions, and reduced unemployment numbers. For 2022, the expectation is for modest returns as we continue to recover from and adapt to the virus. We expect supply chain issues to improve at a faster rate that what is projected (mid-late 2022). Reshoring - the shortening of supply chains - is expected to become a major theme for western countries in the coming years. Like always, we will continue to monitor portfolios and make changes as opportunities arise.

Resiliency of the Human Race

Over the last two years, people around the world have faced unexpected and new challenges like we haven’t experienced before. The interior of BC in particular has been hit hard with forest fires and now severe rainfall and flooding. On Nov 11th heavy rains began and it was estimated in the following 2-3 days the total downpour equaled what we would normally see in the month of November. Some pictures of the severity of the floods are below.

In speaking with clients living in these areas we were so surprised to hear how thankful they were for all the help from the army, local authorities, search and rescue, and many others. It’s encouraging to see the good in people and how helpful we all can be when working together to solve issues.

We wanted to extend our sincere sympathies for all those affected, and we will continue to think about you and your families.

Trains and Phone Screens

For the end of this quarter, we wanted to continue our theme of looking human ingenuity that allows the advancement of technology and future improvements to the environment and our lives. Below are two articles we found of interest:

Zero Emissions Locomotive Projects: Over the last few years, hydrogen fuel cells and battery technology has vastly improved. This has primarily been utilized in the automotive industry. However, CP Rail is on track to deliver the first ever North American zero emission line-haul freight train. Railway systems have been one of the more climate friendly ways of transporting goods across a country. Railroad trains on average account for 40% of freight cargo but it is currently estimated it only accounts for 1.9% of greenhouse gases per year. Reducing this to zero will help the environment and is a step in the right direction. Our hope is the trucking, shipping, and airline industry can soon follow suit. More on this story can be found here: https://www.cpr.ca/en/media/canadian-pacific-expandshydrogen-locomotive-program-to-include-additional-locomotives-fueling-stations-with-emissions-red

Unbreakable Phone Screens: The two most common issues consumers have with their cell phones are either a cracked screen or water damage. We are confident a fully waterproof phone will soon be created, but for now most people are left with a bag of rice to try and dry it out. But for the other issue, a team at the University of Queensland in Australia are working on a group of materials called perovskites. They have unique properties that can emit light in response to an electric current, allowing it to act like a LED screen. But when embedded into a glass matrix, they create an extremely strong sponge like structure which also allows for a degree of flexibility upon impact, preventing screens from breaking due to brittleness. The researchers estimates that this technology is still 5 years away from application. Another benefit is that the screens could be recycled (instead of thrown out) when it is no longer usable. More on this story here: https://screenrant.com/flexible-glass-phone-screens-unbreakable/

Holiday Recipes

We wanted to include a couple of ideas for the holiday feast, an alternative to the traditional turkey and a savory tart.

Check out our recipe page here: https://www.beaconwealthpartners.ca/recipes

Conclusion

Like many previous years, 2021 seemed to fly by. Thankfully for most, this year was an improvement from 2020. We wanted to wish everyone a safe and happy holiday season.

Jack Fournier B.Sc, FMA, CIM®
Portfolio Manager | iA Private Wealth
Insurance Advisor | iA Private Wealth Insurance Agency
700-609 Granville St. Vancouver, BC
p: 604 895 3348
jack@beaconwealthpartners.ca

Travis Kidson, B.Sc, CFP®, CIM®
Portfolio Manager | iA Private Wealth
Insurance Advisor | iA Private Wealth Insurance Agency
700-609 Granville St. Vancouver, BC
p: 604 895 3486
travis@beaconwealthpartners.ca

This information has been prepared by Travis Kidson and Jack Fournier who are Portfolio Managers for iA Private Wealth Inc. and does not necessarily reflect the opinion of iA Private Wealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Portfolio Managers can open accounts only in the provinces in which they are registered.

iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. iA Private Wealth is a trademark and business name under which iA Private Wealth Inc. operates.

Insurance products are provided through iA Private Wealth Insurance Agency which is a trade name of PPI Management Inc. Only products and services offered through iA Private Wealth Inc. are covered by the Canadian Investors Protection Fund.

Beacon Wealth Partners is a personal trade name of Jack Fournier and Travis Kidson.