As a business owner, your corporation should have a life insurance policy on your life - a key part of your estate and succession planning.

The S&P 500 is down 14.0% since President Trump took office on Jan 20, 2025. His erratic approach to tariffs has shaken investor confidence, pushing markets into a sharp correction. As of now, this would be the worst first 100 days out of all new term Presidents going back to 1900, according to Carson Research.

Concerned about U.S. tarrifs? Adam Pukalo | You are not alone if you are concerned about how your portfolio could be impacted by US tariffs. There are always potential opportunities in situations like this. When there is a lower Canadian Dollar, it benefits Canadian companies that export goods and services to the U.S., as their products become more competitively priced. For example, companies like Canadian Pacific Kansas City and Canadian Natural Resources both have significant cross-border operations. A weaker Canadian Dollar could offset any tariff related pressure for these companies. There is no doubt that tariffs can create short-term volatility, which is why it’s important to have companies in your portfolio that have diversified operations that give them flexibility to adjust to changing costs and trade policies. Knowing how the investments in your portfolio could perform is important. What sectors of the stock market could feel the impact from the tariff announcements? A stronger U.S. Dollar can increase input costs for Canadian companies that rely on U.S. imports, especially in sectors like consumer goods and transportation. For example, companies like Loblaw and Procter & Gamble could experience higher costs on imported goods, which would temporarily squeeze margins. There is no doubt that tariffs can create short-term volatility, which is why it’s important to have companies in your portfolio that have diversified operations that give them flexibility to adjust to changing costs and trade policies. Remember, markets often react more to the news than actual stock fundamentals.

The ‘Real’ Return of a GIC Adam Pukalo | Are you considering GIC’s given the current rates? I hear a lot of investors turning to GIC’s given the volatility in the markets. However, do you account for the real return of a GIC? What I mean by real return is the tax and inflation factors. For example, say you have excess cash in your corporation, and you are considering buying a GIC. According to Mackenzie Investments, if you were to purchase a GIC in a taxable account like this the real return of a GIC has often been negative throughout history. When choosing investments, it is crucial to evaluate your options through the lens of real return. If you have a longer term time horizon and depending on your risk tolerance, sometimes the low-risk path of a GIC can work against you. As a Portfolio Manager, I look at all different factors when choosing investments for clients, like the real return of a GIC. While GIC’s I do think are suitable in some cases, you need to know the whole picture.

Israel/Hamas Conflict & The Markets Adam Pukalo | I’ve been getting some questions lately about the potential market impact of Hamas’ brutal terrorist attack on Israel. Looking at the numbers, after just a few trading days markets have been resilient overall. Remember, markets are forward looking and typically will look ahead to the economy recovering from the initial shock even as some uncertainty persists. Negative market behavior is not usually driven by the geopolitical event itself. If you look back in history, the major market declines take place during or near a recession, not a geopolitical event. There are a few risks that do remain that include the conflict to expand, and the Middle East remains a sensitive region. Also, oil prices might have a higher sensitivity given the current inflationary environment we are in. Overall, I have not changed my market outlook in response to this conflict, although I will continue to monitor it closely.

Do You Own CDN Telecom’s? Adam Pukalo | Canadian’s love to buy telecommunication companies for their portfolio often because of the dividend they pay. Telus, BCE (otherwise known as Bell Canada) and Rogers are the big three telecom companies in Canada. However, these three companies are down year-to-date 13%, 9% and 16% respectively. Why are they all down this year? There two possible main reasons: First, high interest rates. Investors who were attracted to these stocks for their high dividends could possibly get better rates in other high yield instruments like GIC’s and savings accounts. Second, the entrance of Quebecor as a national wireless competitor. With the recent purchase of Freedom Mobile, Quebecor will be the fourth largest telecom in Canada. I believe with interest rates potentially staying higher for longer telecom companies might stay out of favor for a while. There may be opportunities to still buy and hold, but for the long run. Is your financial advisor analyzing the companies in your portfolio?

What are Principal Protected Notes? Adam Pukalo | Investors are constantly seeking opportunities that balance both security and potential returns. One investment instrument that aims to provide this balance is Principal Protected Notes (PPNs). These hybrid financial products have gained popularity in recent years as they offer both capital protection and exposure to potential market gains. Principal Protected Notes are a type of investment that combines a bond component with a derivative. They are designed to protect the initial investment (principal) while also offering the potential for returns linked to the performance of an underlying asset, such as a stock, index, or commodity. PPNs have a predetermined maturity date, usually ranging from one to ten years, during which the principal is guaranteed. Advantages of Principal Protected Notes: 1. Capital protection: The most appealing aspect of Principal Protected Notes is the guarantee of the invested principal. Even if the underlying asset depreciates, the investor will receive at least their initial investment back when the note matures. This aspect makes PPNs an attractive option for risk-averse individuals or those seeking capital preservation. 2. Market exposure with reduced risk: PPNs provide an opportunity for investors to benefit from the performance of the underlying asset without direct ownership. This indirect exposure allows investors to participate in different markets, indices, or sectors while limiting potential losses to their original investment. 3. Customization options: Principal Protected Notes can be structured with a wide range of features tailored to an investor's preferences. These features may include periodic coupon payments, tax efficiency, or even early redemption possibilities. This flexibility enables investors to align their investment strategy with their specific financial goals. Disadvantages of Principal Protected Notes: 1. Limited potential returns: While PPNs offer capital protection, the trade-off is limited upside potential compared to direct investment in the underlying assets. The potential returns are often capped, typically through participation rates, caps, or leverage limits. This means that investors may miss out on substantial gains if the underlying asset performs exceptionally well. 2. Complexity and potential costs: The underlying structure of PPNs can be intricate, involving derivatives and other complex instruments. Investors should thoroughly understand the terms and conditions, as well as the potential costs associated with these products. Some PPNs may carry high management fees or issuer charges, which can reduce overall returns. 3. Credit risk of the issuer: Although PPNs are designed to protect the principal, investors should consider the creditworthiness of the issuer. Credit risk refers to the possibility that the issuer, such as a bank or financial institution, may default on payments or fail to return the principal at maturity. To mitigate this risk, investors should choose issuers with strong credit ratings and consider diversifying their investments across multiple issuers. My approach is to bring clients unique ideas for their portfolio like Principle Protected Notes. Want to see if they are suitable for your portfolio? Schedule a call by clicking here .

How to Make Your Farm Transition Easier Adam Pukalo | The U.S. dollar is at a 15-month low. What does this mean for the stock and commodity markets? I have some good news for you. Investors in the stock market typically want to see the U.S. dollar decreasing. The reason is because most U.S. companies have sales abroad, which means these earnings will increase as the U.S. dollar decreases. I’ve been talking with clients on how July could be a strong month for the markets. The U.S. dollar decreasing is just another tailwind to support this. As for commodities, the U.S. dollar decreasing could be seen as a positive factor too because it is cheaper for other countries to buy their grain. However, this is the time of year where acres and weather are more of a bigger factor. For example, USDA and Stats Can reports are often market movers. Bottom line, I watch all different factors like the U.S. dollar for my clients. The stock and commodity markets are all connected, and I help make sense of them for clients.