All Things Will Pass!
Franklin Delano Roosevelt once said “the only thing we have to fear is fear itsself” (Roosevelt, 1933, First Inaugural Address of Franklin D. Roosevelt).
Sir Wilfred Laurier emphasized in a speech at Toronto’s Massey Hall that the 20th century would belong to Canada (Wilson-Smith, 2016). Speaking from personal opinion, it would appear that he was 100 years ahead of the times.
Canada is the second largest country in the world – renowned for its diversification, as well as its friendly, courteous (apologetic), and educated population. Canada is also know for it’s public and private infrastructure. It is a culture and society that prides itself on having an equitable system of laws and order. The country, as a whole, remains proactive regarding discernible immigration.
Given a modest time window, these factors will assist immensely in our country’s ability to vault ahead as the pandemic waves, however these last 8 months have certainly reshaped our country, much of the world.
Few could logically disagree that these are the strangest and most uncertain of times. Recently, the province of Ontario has been registering more than 400 new daily cases of COVID-19 . Worldwide new daily cases are in the hundreds of thousands, and > 30 million people have been infected.
This and more has resulted in further talks of targeted local shutdowns, thus restricting trade and travel. What will this mean? Just look around your immediate neighbourhoods; many local businesses are already struggling to survive, and several have already closed.
Local shops and eateries of every description desperately need our support – please think, act and shop local. There is no question that systemic unemployment is besetting the hospitality and travel sectors. Remember, Ontario is “Yours to Discover”. Presently, top quality hotels and resorts are offering incredible deals – Don’t you deserve a break today or this coming weekend? Most manufacturers and food suppliers are playing catch-up, albeit at a mitigated pace. Car dealerships throughout the province are brimming with unsold vehicles. This October/November maybe one of the best times in every Canadian’s lifetime to take advantage of the incredible terms available.
Walk through any Hospital, visit a clinic, tour a shopping mall, frequent a restaurant and office tower. Most – if not all – are operating at < 50% capacity.
Private and public construction projects that were started 2 to 5 years ago are being finished. What will come next? FYI: The deals being offered by prestigious builders in the downtown condo market have never been riper & juicier, just ask any realtor.
Further, interests rates have never been lower; now is the exact time to encourage your local politicians to get behind the fixing of our roads, highways, expand & upgrade public transport. There is no plausible excuse why Canadians cannot enjoy the benefits of a truly world class daycare network – the infrastructure bridge that transports parents to work.
These ultra low borrowing rates are the perfect opportunity to upgrade our hospitals and other public buildings, and more importantly, expand our educational horizons by making our schools, colleges, apprentice programs and universities a more integrated and inclusive system. Keep in mind that numerous government-sponsored employment,business loans & mortgage deferment plans will end this fall or next spring.
There is no doubt that all levels of government must continue to allocate funds to projects that raise municipal, provincial and federal revenues. Regardless of the immediate consequences, subsidising poor or reckless personal financial governance should not be condoned by the government. Capital markets should vet this hyper inflated portion of the market place.
The much heralded Mortgage Deferment plan which now includes 16% of homeowners (nearly 1.5 million) starts to expire within the week – counter balancing the negative consequences of ill-prepared homeowners selling their residences. This presents a fiscal opportunity for many young families that have been locked out of the market place, and whom have demonstrated more financial prudence.
Finally, most of us remain befuddled by the meteoric rise in world equity markets; commodities other than oil prices have catapulted to near all time highs.(ie: gold/silver)
Saving Interest rates are near zero, mortgage rates have never been cheaper, home prices across the country continue to skyrocket with unabashed determination – so where do we go from here?
Please remember that can all help to settle this pandemic by wearing a mask properly, light gloves and by remembering to social distance. Always remind yourself that patience is a virtue.
If these or similar points raise questions, please reach out for a confidential conversation with any of our 4 offices.