(source: Bloomberg https://www.bloomberg.com/markets, MSCI https://www.msci.com/end-of-day-data-search and ARG Inc. analysis)

What happened last week?

• The TSX and Dow reached new all-time highs last week.  The TSX has had an unbroken series of thirteen daily gains: last losing value on October 4th.

• Overall inflation rate for September was 4.4%, compared with the U.S. rate of 5.4% for the same period.  The assumption that current inflation is temporary and related directly to the reopening and recovery of economies is beginning to be questioned.  When food, shelter and transportation prices rise, 3.9%, 4.8% and 9.1%, respectively, concern also rises.  Eventually inflation will pressure central banks like the U.S Federal Reserve and our Bank of Canada to slow price increases by slowing economic growth. (Source1, Source2)

• Evergrande, China’s massive housing builder, continues to struggle with debt repayment issues ($300 Billion) and links to a housing bubble in that country as China’s Gross Domestic Product (GDP) growth stagnates. 

What’s ahead for this week?

• In Canada, wholesale trade and the raw materials price index for September and two very important indicators for August, the employment report and real GDP, will be announced.  On Wednesday the Bank of Canada will release its latest monetary policy announcement.

• In the U.S., September’s goods trade deficit, wholesale and retail inventories, durable goods orders, pending home sales and new home sales will be announced.  Personal spending and real GDP, also for September, will be the most noteworthy economic indicators released this week.

• Globally, GDP, business climate, consumer confidence, unemployment and consumer inflation will be released for Germany.  Eurozone figures for GDP, inflation, consumer confidence and money supply are scheduled to be announced. 

For more information contact: [email protected]

www.iaic.ca | Tel (519) 291-2817 | 135 Main Street, East | PO Box 68 | Listowel, ON N4W 3H2

This report is produced by Independent Accountants' Investment Counsel Inc (“IAIC”) in conjunction with ARG Inc.  All graph and chart statistical data contained in this report has been supplied by ARG Inc. The views and opinions expressed in this report are based on market statistics.  No guarantee of outcome is implied, and opinions may change without notice.  Investors should not base any of their investment decisions solely on this report nor should any opinions expressed within this report be construed as a solicitation or offer to buy or sell any securities mentioned herein.  Although the information contained in this report has been obtained from sources that IAIC believes to be reliable, we do not guarantee its accuracy, and as such, the information may be incomplete or condensed. All opinions, estimates and other information included in this report constitute our judgment as of the date hereof and are subject to change without notice.

Please contact your IAIC representative if you have any questions regarding this report. 

©Copyright 2021 Independent Accountants’ Investment Counsel Inc. All rights reserved.