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07/26/22

Sightline Discusses Economic Headwinds Facing Investors with the Financial Post

Investors are currently facing numerous economic headwinds as a potential recession looms. To help investors learn more about this economic turbulence so they can effectively protect their portfolios, the Financial Post spoke with Sightline Wealth Management for insight.

The first challenge is a return to high inflation, which reached its highest year-over-year rate in Canada this May in 40 years. Sightline Senior Investment Advisor Paul de Sousa says that this is an issue for investors since, “inflation lowers the purchasing power of our dollars, increases the cost of doing business, consumes discretionary income available for investment and acts as a de facto tax on both savings and a wide range of investments.”

In addition to inflation, de Sousa says that high levels of government debt are also poised to become an issue for investors since this is usually accompanied by higher taxes. “Excessive government debt also drives interest rates higher, increasing borrowing costs for the private sector and discouraging capital investment,” he adds.

Other factors that will likely impact investors’ portfolios explained by de Sousa in this article include rising central bank rates, quantitative tightening replacing quantitative easing and equities looking for price discovery. With all these headwinds converging together, de Sousa warns that investors may face a recession or stagflation in the near future.

Click here to read the entire Financial Post article.

 

 

Important Information:  

Sightline Wealth Management LP (“Sightline”) is an investment dealer and is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF). Sightline provides management and investment advisory services to high-net-worth individuals and institutional investors primarily through fee-based accounts.  

Sightline Wealth Management LP is a wholly owned subsidiary of Ninepoint Financial Group Inc.

(“NFG Inc.”). NFG Inc. is also the parent company of Ninepoint Partners LP, it is an investment fund manager and advisor and exempt market dealer. By virtue of the same parent company, Sightline is affiliated with Ninepoint Partners LP. Information and/or materials contained herein is for information purposes only and does not constitute an offer to sell or solicitation to purchase securities of any issuer or any portfolio managed by Sightline Wealth Management or Ninepoint Partners, including Ninepoint managed funds.

 Sightline Wealth Management (“Sightline”) makes every effort to ensure that the information has been derived from sources believed to be reliable and accurate. However, Sightline assumes no responsibility for any losses or damages, whether direct or indirect, which arise out of the use of this information. Sightline is not under any obligation to update or keep current the information contained herein. The information should not be regarded by recipients as a substitute for the exercise of their own judgment. Past performance is not indicative of future performance. Please speak to your Advisor regarding the suitability of information provided in this article for you. The opinions, estimates, projections and/or recommendations contained in this document are those of the author as of the date hereof.

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