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eNewsJan 2018 - OUR EXPANSIONIt has always been our objective to provide you with a level of support and service second to none and in that process, bring to you quality advice and positive results.
In that regard, I am pleased to announce to you that we are in the process of expanding the range of products and the support we have to offer you. We will be expanding our team to include Mr. Matt McGill, P.F.P., C.I.M., F.C.S.I., and his staff. Matt is a senior investment advisor with over 17 years of industry experience focusing on financial planning and asset management needs. Combined, Matt and I will be bringing to the table over 60 years of extensive knowledge and industry experience. I am very confident that the value added as a result of this merger will serve to enhance the benefits that you have enjoyed in the past and will continue to enjoy in the future. I believe that it is important to emphasize the team component, as further staff additions are being planned so that we can better serve your needs in what is becoming an increasingly complex financial environment. Sincerely, Michael Gentile, B.A., C.L.U., CH.F.C., C.F.P. Chartered Financial Consultant HAPPY NEW YEARNow that we have turned the corner into 2018 it is time to give serious consideration on what we can do to reduce our 2018 tax bill.
Two items come to mind:
Both are very effective methods towards reducing your tax exposure. We would encourage you to give us a call if you have any questions and if you would like to take advantage of the tax savings opportunity that exist within these tax shelters available to you. All the best for 2018! Mike Michael Gentile CFP, CLU, CH.F.C. December 2017 Year EndIt is this time of year (yearend) that portfolio managers reconcile their investment portfolios in terms of what they have sold to generate a profit for you the investor.
This is known in the industry as a distribution the net effect of which is a tax slip for your share of the gains within your investment account. At some point in time the tax needs to be paid i.e. at the time you sell or redeem the asset or when the portfolio manager initiates a distribution. It is important to know that you only pay the tax once, because the tax you pay is reflected in the adjusted cost base. Again let me assure you that this is standard procedure across the investment industry and as always it is our objective to grow your investment for your future benefit. Please feel free to call me (519-886-2707) if you have any questions or concerns. Michael Gentile CFP, CLU, CH.F.C. December 2017
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June 2017
China - Chapter # 12
In my last chapter on China I made reference to the new Silk Road initiatives.
It should then come as no surprise that in order to support what has become the largest manufacturing economy in the world as well as the world's largest exporter of goods, that it is imperative that China develop a number of transportation projects to facilitate the ability to deliver and import the goods and services needed to feed its growing economy.
Consistent with its need to accommodate its appetite for energy, China built one of the world's largest producers of renewable energy called the 3 Gorges Dam. This dam produces 22,500 Mega Watts of electricity and is the largest hydro power station in the world. I got to see it 1st hand. Some may disagree, however it is becoming obvious that the Chinese are finding ways to reduce the use of coal and crude oil. The power generated is the equivalent to burning 25 million tons of crude oil or 50 million tons of coal. China has already vaulted past the USA to be the world leader in renewable energy (source - Financial Post).
As I have said in the past "to ignore China is a big mistake". China continues to expand its global influence with the most recent being its admission to the MSCI. China indeed has become a serious player in global markets. An article published in a local paper makes reference to Ford's big investment in automotive manufacturing in China. They will be building one of its most popular compacts there.
As we move forward in an environment driven by technological advances within a broad range of sectors, global economies will continue to reflect what can only be described as a global village and China is determined to play a significant role in that process ie. Ford.
Michael Gentile
CFP, CLU, CH.F.C.
It should then come as no surprise that in order to support what has become the largest manufacturing economy in the world as well as the world's largest exporter of goods, that it is imperative that China develop a number of transportation projects to facilitate the ability to deliver and import the goods and services needed to feed its growing economy.
Consistent with its need to accommodate its appetite for energy, China built one of the world's largest producers of renewable energy called the 3 Gorges Dam. This dam produces 22,500 Mega Watts of electricity and is the largest hydro power station in the world. I got to see it 1st hand. Some may disagree, however it is becoming obvious that the Chinese are finding ways to reduce the use of coal and crude oil. The power generated is the equivalent to burning 25 million tons of crude oil or 50 million tons of coal. China has already vaulted past the USA to be the world leader in renewable energy (source - Financial Post).
As I have said in the past "to ignore China is a big mistake". China continues to expand its global influence with the most recent being its admission to the MSCI. China indeed has become a serious player in global markets. An article published in a local paper makes reference to Ford's big investment in automotive manufacturing in China. They will be building one of its most popular compacts there.
As we move forward in an environment driven by technological advances within a broad range of sectors, global economies will continue to reflect what can only be described as a global village and China is determined to play a significant role in that process ie. Ford.
Michael Gentile
CFP, CLU, CH.F.C.
June 2017 - Mike's Semi Annual Newsletter
There have been considerable discussions over the last 10 to 12 months as to whether or not the bull market has run its course.
Had you concluded about one year ago that the market had peaked; you would have lost out on about 1,000 points in growth.
Can or will the markets retreat over the next 12 months is a question that I cannot answer with any degree of accuracy. I have always advised you, as my valued clients, to stay the course over the long term, the net result of which has been a significant benefit to you.
Yes, markets will fluctuate and that is normal. As opportunities and good ideas come along, we are pleased to share them with you. I spend a considerable amount of time meeting with portfolio managers to get their take on market directions and the solutions they have to offer in a very complex financial environment.
From a macroeconomic point of view, I am advised that global growth continues to accelerate. Consistent with that growth, we are seeing central bankers beginning to initiate interest rate increases which, is a further testament to a growing global economic environment. i.e. unemployment rates are the lowest they've been in 16 years.
As always, we are here to assist you with a broad range of financial tools and we encourage you to take advantage when and if the opportunity presents itself.
Thank you again for the confidence that you have placed in us!
Michael Gentile
CFP, CLU, CH.F.C.
Had you concluded about one year ago that the market had peaked; you would have lost out on about 1,000 points in growth.
Can or will the markets retreat over the next 12 months is a question that I cannot answer with any degree of accuracy. I have always advised you, as my valued clients, to stay the course over the long term, the net result of which has been a significant benefit to you.
Yes, markets will fluctuate and that is normal. As opportunities and good ideas come along, we are pleased to share them with you. I spend a considerable amount of time meeting with portfolio managers to get their take on market directions and the solutions they have to offer in a very complex financial environment.
From a macroeconomic point of view, I am advised that global growth continues to accelerate. Consistent with that growth, we are seeing central bankers beginning to initiate interest rate increases which, is a further testament to a growing global economic environment. i.e. unemployment rates are the lowest they've been in 16 years.
As always, we are here to assist you with a broad range of financial tools and we encourage you to take advantage when and if the opportunity presents itself.
Thank you again for the confidence that you have placed in us!
Michael Gentile
CFP, CLU, CH.F.C.
May 2017
China - Chapter # 11
It was recently reported both on television and in the print media, China's plans to re-create the Silk Road connecting Asia, Africa and Europe.
Of interest to note is that I made reference to China's objectives in my 1st Chapter characterizing the Chinese people as industrious, entrepreneurial and aggressive in their approach to catching up to and potentially surpassing Western growth and technology.
I also made reference to the Silk Road and its history in Chapter 8 on my web site. As early as 1754 Marco Polo's father had travelled the Silk Road.
Needless to say, this re-do of the Silk Road is consistent with what I have previously indicated but on a much grander scale. China has figured out what it needs I order to feed its unquenchable thirst for goods and services to meet an ever increasing demand from a growing population with an appetite for what the rest of the world has enjoyed for many decades.
In my 1st Chapter, I indicated that the Chinese people have tasted the forbidden fruit "capitalism" and they are not going back to the old and stricter format of communism. Yes, they represent one of the last bastians of communism, but they are definitely embracing what could be described as more open and more lenient free enterprise concepts.
If they want to participate in the benefits of a freer society, they are going to have to accept and adapt to a less rigid dogma. They will need to do this to open the doors to a more lucrative world trade environment. As a result of significant trade imbalances in China's favour over the last couple of decades, the Chinese have deep pockets and are in a position to provide financing through loans to those countries in need of that capital required to build the roads and railways to transport those goods manufactured in China.
It also goes without saying that once indebted to China, those countries will have to employ Chinese technology to service and maintain those transportation networks.
I sincerely believe that it is worth noting that under Chairman Maue's rule, China became a very isolationist country but has since moved in a very different direction, which seems very much in contrast to what is being proposed by the newly elected American president called "protectionism". Clearly it is China's intent to be able to dictate the terms as the preeminent financier of these global projects.
Michael Gentile
CFP, CLU, CH.F.C.
Of interest to note is that I made reference to China's objectives in my 1st Chapter characterizing the Chinese people as industrious, entrepreneurial and aggressive in their approach to catching up to and potentially surpassing Western growth and technology.
I also made reference to the Silk Road and its history in Chapter 8 on my web site. As early as 1754 Marco Polo's father had travelled the Silk Road.
Needless to say, this re-do of the Silk Road is consistent with what I have previously indicated but on a much grander scale. China has figured out what it needs I order to feed its unquenchable thirst for goods and services to meet an ever increasing demand from a growing population with an appetite for what the rest of the world has enjoyed for many decades.
In my 1st Chapter, I indicated that the Chinese people have tasted the forbidden fruit "capitalism" and they are not going back to the old and stricter format of communism. Yes, they represent one of the last bastians of communism, but they are definitely embracing what could be described as more open and more lenient free enterprise concepts.
If they want to participate in the benefits of a freer society, they are going to have to accept and adapt to a less rigid dogma. They will need to do this to open the doors to a more lucrative world trade environment. As a result of significant trade imbalances in China's favour over the last couple of decades, the Chinese have deep pockets and are in a position to provide financing through loans to those countries in need of that capital required to build the roads and railways to transport those goods manufactured in China.
It also goes without saying that once indebted to China, those countries will have to employ Chinese technology to service and maintain those transportation networks.
I sincerely believe that it is worth noting that under Chairman Maue's rule, China became a very isolationist country but has since moved in a very different direction, which seems very much in contrast to what is being proposed by the newly elected American president called "protectionism". Clearly it is China's intent to be able to dictate the terms as the preeminent financier of these global projects.
Michael Gentile
CFP, CLU, CH.F.C.
April 2017
Regulatory Changes
Over the last year and a half we made a considerable effort to keep you apprised of a variety of issues that have had an impact on investment returns in today's market place, as well as the opportunities available to you.
Consistent with our ongoing communications to you, our valued client, I am sending this information to you today.
We believe that the Canadian Securities Administration have proposed changes to the current compensation model that will effectively increase your costs or reduce the advice currently available to you.
You may want to consider contacting your local Member of Parliament to ask them to explain why they would support and encourage this arrangement.
I sincerely believe that we have lived up to our commitment to "not meet but exceed your expectations". If you are satisfied with what we have done to grow and manage your assets, I would appreciate hearing from you.
I have personally spoken to a number of our legislators however, until they hear from you, I would expect them to probably do nothing, when in fact they should be questioning the potential impact of what the regulators wish to impose on all of us.
Sincerely,
Michael Gentile
CFP, CLU, CH.F.C.
Consistent with our ongoing communications to you, our valued client, I am sending this information to you today.
We believe that the Canadian Securities Administration have proposed changes to the current compensation model that will effectively increase your costs or reduce the advice currently available to you.
You may want to consider contacting your local Member of Parliament to ask them to explain why they would support and encourage this arrangement.
I sincerely believe that we have lived up to our commitment to "not meet but exceed your expectations". If you are satisfied with what we have done to grow and manage your assets, I would appreciate hearing from you.
I have personally spoken to a number of our legislators however, until they hear from you, I would expect them to probably do nothing, when in fact they should be questioning the potential impact of what the regulators wish to impose on all of us.
Sincerely,
Michael Gentile
CFP, CLU, CH.F.C.
March 2017
It would appear the genie is out of the bottle
Chapter 10 - The Chinese
It’s no surprise when Saudi Arabia announces that it wants to jump on the China band wagon. From their perspective the Chinese have deep pockets and a need for energy as I have referenced in an earlier chapter.
A few days earlier Ford indicated that they will begin producing their upscale Lincoln vehicle in China. I have learned that the production plant will be located in the city of Chongqing, a sizeable metropolis rumored to have a population of about 33 million people.
Needless to say, the Chinese are negotiators. It is a requirement that foreign auto manufacturers in order to produce cars in China have a Chinese joint venture partner.
High end vehicles in China are not so much a necessity as a status symbol. As the middle class continues to expand through wealth accumulation, so does their appetite for luxury goods that 20 or 30 years ago were but a distant dream. Yes oil and transportation go hand in hand, so the folks in Beijing will want continued assurance that they have access to that Saudi commodity called oil. It should also be noted that of China’s 12 largest state owned enterprises (SOE’s) 25% are in the oil business.
Again from a global perspective China will continue to have a significant impact on the price of energy for many years to come.
Michael Gentile
CFP, CLU, CH.F.C.
A few days earlier Ford indicated that they will begin producing their upscale Lincoln vehicle in China. I have learned that the production plant will be located in the city of Chongqing, a sizeable metropolis rumored to have a population of about 33 million people.
Needless to say, the Chinese are negotiators. It is a requirement that foreign auto manufacturers in order to produce cars in China have a Chinese joint venture partner.
High end vehicles in China are not so much a necessity as a status symbol. As the middle class continues to expand through wealth accumulation, so does their appetite for luxury goods that 20 or 30 years ago were but a distant dream. Yes oil and transportation go hand in hand, so the folks in Beijing will want continued assurance that they have access to that Saudi commodity called oil. It should also be noted that of China’s 12 largest state owned enterprises (SOE’s) 25% are in the oil business.
Again from a global perspective China will continue to have a significant impact on the price of energy for many years to come.
Michael Gentile
CFP, CLU, CH.F.C.
It would appear the genie is out of the bottle
Chapter 9 - China
Consistent with what I have been saying in my previous 8 chapters, a senior chief investment strategist confirmed what I have been able to recently observe vis-a-vie the domestic activity in China.
It is probably fair to say that you haven’t experienced a traffic jam until you have been on a road in Beijing and not during the normal rush hour. You could probably describe the traffic congestion as 24/7. The obvious increase in traffic and the increasing demand for higher end vehicles suggest to me that the middle class in China are more affluent than they have ever been. I clearly remember many years ago when I purchased a vehicle from my brother-in-law that came with power windows and his comment was that I would never go back to manual roll up. I think that we can draw from that, that China and Chinese people have moved on and in the process have embraced a more sophisticated and technologically advanced environment with all its associated bells and whistles.
Why would anybody in China want to go backwards in a world that already has developed the Bullet train that travels up to 300 kilometers per hour? Yes, the Chinese people want to sell goods into a global market and it appears that they are willing to make some compromises. Trade needs to be a two way street and in a perfect world the traffic would be equal in both directions. The reality is that this will not always be the case. For the last 10 to 20 years, global manufacturers have recognized that low cost labour which is abundant in China has been profitable for them, while sometimes ignoring the fact that the Chinese people have become very proficient at what they do, the net effect of which is that they have been able to copy and launch similar goods with more competitive pricing.
I saw an article indicating that China’s top law makers are worth billions and further to that report that they have a combined wealth that is greater than the G.D.P. of Sweden, Nigeria or Belgium. I guess you could say that, that wealth rivals the wealth of Donald Trump and Elon Musk to name a few.
In conclusion, it might be of interest to note that some very high profile financial institutions have long ago recognized the growing wealth in China i.e. “Manulife Financial” and in doing so, have made significant inroads towards tapping into the new found and growing wealth of the world’s second largest economy.
Michael Gentile
CFP, CLU, CH.F.C.
It is probably fair to say that you haven’t experienced a traffic jam until you have been on a road in Beijing and not during the normal rush hour. You could probably describe the traffic congestion as 24/7. The obvious increase in traffic and the increasing demand for higher end vehicles suggest to me that the middle class in China are more affluent than they have ever been. I clearly remember many years ago when I purchased a vehicle from my brother-in-law that came with power windows and his comment was that I would never go back to manual roll up. I think that we can draw from that, that China and Chinese people have moved on and in the process have embraced a more sophisticated and technologically advanced environment with all its associated bells and whistles.
Why would anybody in China want to go backwards in a world that already has developed the Bullet train that travels up to 300 kilometers per hour? Yes, the Chinese people want to sell goods into a global market and it appears that they are willing to make some compromises. Trade needs to be a two way street and in a perfect world the traffic would be equal in both directions. The reality is that this will not always be the case. For the last 10 to 20 years, global manufacturers have recognized that low cost labour which is abundant in China has been profitable for them, while sometimes ignoring the fact that the Chinese people have become very proficient at what they do, the net effect of which is that they have been able to copy and launch similar goods with more competitive pricing.
I saw an article indicating that China’s top law makers are worth billions and further to that report that they have a combined wealth that is greater than the G.D.P. of Sweden, Nigeria or Belgium. I guess you could say that, that wealth rivals the wealth of Donald Trump and Elon Musk to name a few.
In conclusion, it might be of interest to note that some very high profile financial institutions have long ago recognized the growing wealth in China i.e. “Manulife Financial” and in doing so, have made significant inroads towards tapping into the new found and growing wealth of the world’s second largest economy.
Michael Gentile
CFP, CLU, CH.F.C.
February 2017
It would appear the genie is out of the bottle
Chapter 8 - Marco Polo
It was a very long time ago that I listened to on the radio the adventures of Marco Polo. Television was in its infancy and radio was the way to go to media for both entertainment and current news.
As early as 1754, Marco Polo’s father and uncle had already begun trading with Chinese merchants. It wasn’t until 1771 that Marco travelled the now famous Silk Road to China to meet the Kublai Khan in what is now Beijing, a city with a population of about 24 million. Needless to say the history is rich and the future even richer as China embraces capitalism, with a level of enthusiasm not seen since well before the days of Chairman Mao’s Cultural Revolution.
In terms of a more recent history (pre communism) I was interested to see that many of the merchant banks built alongside the Huangpu River were still in existence, dating back before the turn of the century when Shanghai was known for being the doorway to trade and commerce in China. Today the Pudong district in Shanghai rivals many of the world’s great cities both financially and architecturally.
A trip to Shanghai is not complete until you have had an opportunity to experience the Nanjing Road West, China’s most famous shopping district.
In conclusion, I believe that it is fair to say that Shanghai today is demonstrable proof that China has begun to accept the benefits of commerce and capitalism consistent with what westerners have enjoyed for decades if not for centuries or more.
Michael Gentile
CFP, CLU, CH.F.C.
As early as 1754, Marco Polo’s father and uncle had already begun trading with Chinese merchants. It wasn’t until 1771 that Marco travelled the now famous Silk Road to China to meet the Kublai Khan in what is now Beijing, a city with a population of about 24 million. Needless to say the history is rich and the future even richer as China embraces capitalism, with a level of enthusiasm not seen since well before the days of Chairman Mao’s Cultural Revolution.
In terms of a more recent history (pre communism) I was interested to see that many of the merchant banks built alongside the Huangpu River were still in existence, dating back before the turn of the century when Shanghai was known for being the doorway to trade and commerce in China. Today the Pudong district in Shanghai rivals many of the world’s great cities both financially and architecturally.
A trip to Shanghai is not complete until you have had an opportunity to experience the Nanjing Road West, China’s most famous shopping district.
In conclusion, I believe that it is fair to say that Shanghai today is demonstrable proof that China has begun to accept the benefits of commerce and capitalism consistent with what westerners have enjoyed for decades if not for centuries or more.
Michael Gentile
CFP, CLU, CH.F.C.
February 2017
It would appear that the genie is out of the bottle
Chapter 7
You might ask what does writing about China have to do with the recently elected president (Donald Trump) of the U.S.A.? ?
I have commented on numerous occasions that if Trump pushes the protectionist button and in the process creates a negative global trade environment that China will fill the resulting void in a heartbeat.
Mr. Trump has already pulled the plug on the T.P.P. where China is a big player, and he has threatened to impose tariffs on goods imported from China. Imagine, if you will, the impact his 20% tax on all imports would have on Walmart and its customers. How many stores would they close and how many employees would they lay off? ?
From the macroeconomic perspective, if I’m China and I am faced with a significant tariff wall for the goods I produce, I would be looking for other customers to replace the business that I previously had with the US.
Further to that note, those customers (suppliers of goods to the U.S.A.) also impacted by US Protectionism would be interested in establishing a greater relationship with China.
The bottom line is that China would begin to further increase its global presence and in the process achieve its long term goals of becoming the number one global economy.
Further to that point, when I was in China in October of 2016 Xi Jinping (the Chinese President) was meeting in Macau with a group of leaders from Portuguese speaking countries. Keep in mind that Macau was once a Portuguese holding, hence what better place to meet and greet with a view to increasing trade with those leaders and their respective countries.
It should be further noted that not to be outdone by manufacturers of electric cars (lots of Tesla’s in China), that China has embarked upon a new initiative to develop a domestic electric car industry. Given the level of pollution in cities like Beijing and the pension for high net worth Chinese to demonstrate their wealth and their status by owning expensive vehicles, there is going to be considerable potential for the manufacture of electric powered cars as well as the sales of these products into global markets
Michael Gentile
CFP, CLU, CH.F.C.
Chapter 7
You might ask what does writing about China have to do with the recently elected president (Donald Trump) of the U.S.A.? ?
I have commented on numerous occasions that if Trump pushes the protectionist button and in the process creates a negative global trade environment that China will fill the resulting void in a heartbeat.
Mr. Trump has already pulled the plug on the T.P.P. where China is a big player, and he has threatened to impose tariffs on goods imported from China. Imagine, if you will, the impact his 20% tax on all imports would have on Walmart and its customers. How many stores would they close and how many employees would they lay off? ?
From the macroeconomic perspective, if I’m China and I am faced with a significant tariff wall for the goods I produce, I would be looking for other customers to replace the business that I previously had with the US.
Further to that note, those customers (suppliers of goods to the U.S.A.) also impacted by US Protectionism would be interested in establishing a greater relationship with China.
The bottom line is that China would begin to further increase its global presence and in the process achieve its long term goals of becoming the number one global economy.
Further to that point, when I was in China in October of 2016 Xi Jinping (the Chinese President) was meeting in Macau with a group of leaders from Portuguese speaking countries. Keep in mind that Macau was once a Portuguese holding, hence what better place to meet and greet with a view to increasing trade with those leaders and their respective countries.
It should be further noted that not to be outdone by manufacturers of electric cars (lots of Tesla’s in China), that China has embarked upon a new initiative to develop a domestic electric car industry. Given the level of pollution in cities like Beijing and the pension for high net worth Chinese to demonstrate their wealth and their status by owning expensive vehicles, there is going to be considerable potential for the manufacture of electric powered cars as well as the sales of these products into global markets
Michael Gentile
CFP, CLU, CH.F.C.
We are pleased to announce that Personalized Investment Planning has been recognized by AI Global Media (Wealth & Finance Division) as a leading advisor for 2016 as Financial Consultant of the Year, Canada.
"We sincerely appreciate and thank our valued clients for their support in helping us achieve this very significant and very important recognition." - Mike
January 2017
It would appear that the genie is out of the bottle
Chapter 6 – There are Blemishes
My previous 5 chapters on China and its evolution into the 21st century might appear to give the impression that I believe that China is the greatest thing since sliced bread. Let me assure you that this is not the case. My earlier chapters are in essence a documentation of what I have observed so far and what we might expect on a go forward basis.
China has its work cut out when it comes to tackling issues such as pollution and human rights. It is a communist nation with the potential of democracy in the distant future as many of the senior party leaders give way to natural attrition. China’s president Xi Jinping is a young leader by today’s communist party standards and young enough to appreciate how the party has evolved from the time he joined it in 1974. I should also include my personal disclaimer that I am not a political expert.
We have managed investments in China for over a decade and in the process have been able to add significant value to our client’s holdings, hence our strength (asset management and the ability to see and recognize opportunities). I should add that investing in China today is not for the faint of heart. As China has evolved so have many of those associated with corruption at both government and private sector levels. From the outset, my story about what I have been able to see in my visit to China is one consistent with the macro economic environment and how China sees the world and how we get to see China.
It wasn’t all that long ago under the guise of the cultural revolution that the government in its determination to level the playing field also decided to level and destroy what are considered to be symbols of imperial domination ie. antiquities, palaces and anything it deemed not consistent with communism. That needless to say is changing as the Chinese embark upon another economic contributor to the country’s G.D.P (Tourism). If you decide to have an open door policy then you need the facilities necessary to accommodate tourism as well as a broad range of attractions unique to a land rich in history ie. The Forbidden City, The Great Wall of China, and The Terra-Cotta Warriors recently discovered in Xian.
The Chinese are now taking steps to preserve historic treasures while at the same time embracing the modern world. I should also hasten to advise that they have added a commercial component in the form of sales of souvenirs ranging from jewelry to silk ties to be able to capture additional dollars. It might also be worth noting that China is famous for its knock offs ie. its counterfeit watches, clothing and other fashion accessories.
Michael Gentile
CFP, CLU, CH.F.C.
Chapter 6 – There are Blemishes
My previous 5 chapters on China and its evolution into the 21st century might appear to give the impression that I believe that China is the greatest thing since sliced bread. Let me assure you that this is not the case. My earlier chapters are in essence a documentation of what I have observed so far and what we might expect on a go forward basis.
China has its work cut out when it comes to tackling issues such as pollution and human rights. It is a communist nation with the potential of democracy in the distant future as many of the senior party leaders give way to natural attrition. China’s president Xi Jinping is a young leader by today’s communist party standards and young enough to appreciate how the party has evolved from the time he joined it in 1974. I should also include my personal disclaimer that I am not a political expert.
We have managed investments in China for over a decade and in the process have been able to add significant value to our client’s holdings, hence our strength (asset management and the ability to see and recognize opportunities). I should add that investing in China today is not for the faint of heart. As China has evolved so have many of those associated with corruption at both government and private sector levels. From the outset, my story about what I have been able to see in my visit to China is one consistent with the macro economic environment and how China sees the world and how we get to see China.
It wasn’t all that long ago under the guise of the cultural revolution that the government in its determination to level the playing field also decided to level and destroy what are considered to be symbols of imperial domination ie. antiquities, palaces and anything it deemed not consistent with communism. That needless to say is changing as the Chinese embark upon another economic contributor to the country’s G.D.P (Tourism). If you decide to have an open door policy then you need the facilities necessary to accommodate tourism as well as a broad range of attractions unique to a land rich in history ie. The Forbidden City, The Great Wall of China, and The Terra-Cotta Warriors recently discovered in Xian.
The Chinese are now taking steps to preserve historic treasures while at the same time embracing the modern world. I should also hasten to advise that they have added a commercial component in the form of sales of souvenirs ranging from jewelry to silk ties to be able to capture additional dollars. It might also be worth noting that China is famous for its knock offs ie. its counterfeit watches, clothing and other fashion accessories.
Michael Gentile
CFP, CLU, CH.F.C.
Happy New Year 2017
It would appear that the genie is out of the bottle
Chapter 5 – Observation can be a powerful tool
Having had an opportunity to visit 12 different cities over a 3 week period and see firsthand the socio economic environment of the Chinese people, I am able to conclude that observation is indeed a powerful instrument when it comes to understanding the progress they have made over the last couple of decades.
A recent report courtesy of Bloomberg suggests that China’s economy is on a more solid footing than it was previously thought to be. Another very recent publication made reference to the Pacific North West LNG project (Petronas) of which China Petrochemical Group is a significant partner. This would suggest to me that there is a growing demand for energy from China thus further supporting my previous comments that the demand for resources in China is not slowing down and that its economy continues to grow. I believe that we could refer to this as a reasonable observation.
Another observation which is again supported by a recent publication is the usage of cell and smart phones. Given a combination of its size (the world’s 2nd largest state by land area) and its population of about 1.4 billion it is easy to understand and not at all surprising that wireless communication has gone from being non-existent to the most prevalent form of communication in China today. China Mobile is the largest mobile telecommunications company by market cap and the world’s largest mobile phone operator.
You could probably say that the apple does not fall far from the tree (pun intended) as the Apple Corporation has a significant presence in China from both a manufacturing and a sales point of view.
In conclusion, my observations tell me that the Chinese people are really no different than we are. They need to eat, they want to live in comfort, they want upscale transportation, they want to travel and they will do whatever it takes to fulfill these goals and objectives.
As I have often said on many previous occasions “you cannot expect to put a wall around 1.4 billion people and tell them that they can’t have what the rest of the world has.”
Michael Gentile
CFP, CLU, CH.F.C.
Chapter 5 – Observation can be a powerful tool
Having had an opportunity to visit 12 different cities over a 3 week period and see firsthand the socio economic environment of the Chinese people, I am able to conclude that observation is indeed a powerful instrument when it comes to understanding the progress they have made over the last couple of decades.
A recent report courtesy of Bloomberg suggests that China’s economy is on a more solid footing than it was previously thought to be. Another very recent publication made reference to the Pacific North West LNG project (Petronas) of which China Petrochemical Group is a significant partner. This would suggest to me that there is a growing demand for energy from China thus further supporting my previous comments that the demand for resources in China is not slowing down and that its economy continues to grow. I believe that we could refer to this as a reasonable observation.
Another observation which is again supported by a recent publication is the usage of cell and smart phones. Given a combination of its size (the world’s 2nd largest state by land area) and its population of about 1.4 billion it is easy to understand and not at all surprising that wireless communication has gone from being non-existent to the most prevalent form of communication in China today. China Mobile is the largest mobile telecommunications company by market cap and the world’s largest mobile phone operator.
You could probably say that the apple does not fall far from the tree (pun intended) as the Apple Corporation has a significant presence in China from both a manufacturing and a sales point of view.
In conclusion, my observations tell me that the Chinese people are really no different than we are. They need to eat, they want to live in comfort, they want upscale transportation, they want to travel and they will do whatever it takes to fulfill these goals and objectives.
As I have often said on many previous occasions “you cannot expect to put a wall around 1.4 billion people and tell them that they can’t have what the rest of the world has.”
Michael Gentile
CFP, CLU, CH.F.C.
Christmas 2016
It would appear that the genie is out of the bottle
Chapter 4 – Growing Pains
It wasn’t all that long ago that China imposed a regulation limiting Chinese families to having one offspring. This of course was to manage and control an exploding population of a country with potentially declining resources and to mitigate the possibility of discontent as a result of resource depletion – ie: insufficient food and energy to meet their needs. Today Chinese couples are allowed to have up to 2 children however, there is a catch.
When I asked a Chinese woman would she add to her family given the relaxed rules on family birthrates her reply was that it would be financially prohibitive under the new rules – ie: employment and the cost of living and raising an additional child. The idea to increase the allowable birth rate is now driven by the need to maintain enough people to support the growing retirement demographic. Given its rapid growth, could China be the canary in the coal mine? Could we learn from their experience and the right and wrong steps they have taken over the last 2 to 3 decades? I for one believe that we can.
The most controversial issue outweighing almost every other concern is the 3 Gorges Dam. This project set a record for the number of people displaced (over 100 million in total). It has been referred to as an environmental disaster contributing to pollution of the Yangtze River and the destruction of numerous cities so that the insatiable demand for electricity could be met by its massive manufacturing sector.
I had an opportunity to see it first hand and I can confirm that its scope and scale is more than significant. Reference has been made to the abundance of affluent and the degree of erosion along the banks of China’s largest river and to be fair that is an issue that they are dealing with. On that note the Chinese have initiated a process of shutting down older less efficient industries that are contributing to pollution instead of trying to spend money to upgrade those inefficient businesses. The net result is cleaner and more efficient manufacturing.
For comparison purposes you might want to consider the Rust Belt in the USA and the promises made by the newly elected President. I don’t believe that those businesses will be coming back very soon if at all. The technology has changed with the net effect of a reduction in the number of employees needed in today’s high tech environment. It wasn’t all that long ago I watched a documentary about American robot manufacturing that could produce products at a cost less than low cost Chinese labour.
In Chapter 2, I made reference to the number of vehicles on the roads in China. When you consider the particulate matter resulting from the fuel consumption of those vehicles in addition to the fossil fuels being used to create electricity it is easy to understand why pollution has now become a significant topic of discussion in China. I believe that this will become a priority and at the very least something to watch as the Chinese look for solutions to solve this problem sooner as opposed to later.
Michael Gentile
CFP, CLU, CH.F.C.
Chapter 4 – Growing Pains
It wasn’t all that long ago that China imposed a regulation limiting Chinese families to having one offspring. This of course was to manage and control an exploding population of a country with potentially declining resources and to mitigate the possibility of discontent as a result of resource depletion – ie: insufficient food and energy to meet their needs. Today Chinese couples are allowed to have up to 2 children however, there is a catch.
When I asked a Chinese woman would she add to her family given the relaxed rules on family birthrates her reply was that it would be financially prohibitive under the new rules – ie: employment and the cost of living and raising an additional child. The idea to increase the allowable birth rate is now driven by the need to maintain enough people to support the growing retirement demographic. Given its rapid growth, could China be the canary in the coal mine? Could we learn from their experience and the right and wrong steps they have taken over the last 2 to 3 decades? I for one believe that we can.
The most controversial issue outweighing almost every other concern is the 3 Gorges Dam. This project set a record for the number of people displaced (over 100 million in total). It has been referred to as an environmental disaster contributing to pollution of the Yangtze River and the destruction of numerous cities so that the insatiable demand for electricity could be met by its massive manufacturing sector.
I had an opportunity to see it first hand and I can confirm that its scope and scale is more than significant. Reference has been made to the abundance of affluent and the degree of erosion along the banks of China’s largest river and to be fair that is an issue that they are dealing with. On that note the Chinese have initiated a process of shutting down older less efficient industries that are contributing to pollution instead of trying to spend money to upgrade those inefficient businesses. The net result is cleaner and more efficient manufacturing.
For comparison purposes you might want to consider the Rust Belt in the USA and the promises made by the newly elected President. I don’t believe that those businesses will be coming back very soon if at all. The technology has changed with the net effect of a reduction in the number of employees needed in today’s high tech environment. It wasn’t all that long ago I watched a documentary about American robot manufacturing that could produce products at a cost less than low cost Chinese labour.
In Chapter 2, I made reference to the number of vehicles on the roads in China. When you consider the particulate matter resulting from the fuel consumption of those vehicles in addition to the fossil fuels being used to create electricity it is easy to understand why pollution has now become a significant topic of discussion in China. I believe that this will become a priority and at the very least something to watch as the Chinese look for solutions to solve this problem sooner as opposed to later.
Michael Gentile
CFP, CLU, CH.F.C.
December 2016
It would appear that the genie is out of the bottle
Chapter 3
A couple of weeks ago I wrote a commentary about my travels in China, on what I was able to observe during those travels (i.e. have you ever been to a city with a population of 33 million?). Consistent with what I said in my 2 previous articles on the subject, I am pleased to point out some recent publication that I have come across:
With the pendulum swinging in the direction of capitalism, I think we can expect to see a greater demand for products and services consistent with a technologically advanced society.
I had an opportunity to have a conversation with a Chinese doctor returning from Beijing where she was teaching a course in Chinese medicine. Of interest to note, traditional Chinese medicine of over 2000 years is the oldest recognized medical practice in the world. My take away from that conversation was that we are now seeing a potential merger of TCM (traditional Chinese medicine) and Western medicine including Acupuncture. It should be noted that the World Health Organization recommends acupuncture as an effective treatment.
There are several opportunities to consider and explore in what can best be described as the global village in which we live today. As a long time financial advisor I think it would be a mistake to ignore the impact of China on global resources and global economies driven by both external and internal (domestic) demand. It would be a colossal error to underestimate the needs of the world’s most populated nation (@ 1.4 Billion and counting).
Consistent with my comments about the integration of Western and Chinese medicine, there will be opportunities to integrate science and technology for the benefit of all those countries willing to participate.
Michael Gentile
CFP, CLU, CH.F.C.
Chapter 3
A couple of weeks ago I wrote a commentary about my travels in China, on what I was able to observe during those travels (i.e. have you ever been to a city with a population of 33 million?). Consistent with what I said in my 2 previous articles on the subject, I am pleased to point out some recent publication that I have come across:
- “China first to file a million patents in year” – published in the Financial Post a few days ago.
- As recently as Nov 28th (source “Bloomberg”) a piece was written about the recent rally in metals. Guess who? Yes, you guessed it! “China” where a $36 billion dollar plan for new rail lines around Beijing was approved. Having had an opportunity to travel in and about that city of 24 million, I was able to see firsthand the traffic congestion and associated issues. What is happening here at home in Kitchener and Toronto pales in comparison to what is happening in Asia and China in particular.
- “Manulife emerging from slump with Asia leading the way” was the title of an article I found in “Life/Health Professional”. What this suggests to me is that the growth in sales and demand for insurance products is indicative of an economy that is financially advanced and less dependent on publicly funded social benefits associated with communism.
With the pendulum swinging in the direction of capitalism, I think we can expect to see a greater demand for products and services consistent with a technologically advanced society.
I had an opportunity to have a conversation with a Chinese doctor returning from Beijing where she was teaching a course in Chinese medicine. Of interest to note, traditional Chinese medicine of over 2000 years is the oldest recognized medical practice in the world. My take away from that conversation was that we are now seeing a potential merger of TCM (traditional Chinese medicine) and Western medicine including Acupuncture. It should be noted that the World Health Organization recommends acupuncture as an effective treatment.
There are several opportunities to consider and explore in what can best be described as the global village in which we live today. As a long time financial advisor I think it would be a mistake to ignore the impact of China on global resources and global economies driven by both external and internal (domestic) demand. It would be a colossal error to underestimate the needs of the world’s most populated nation (@ 1.4 Billion and counting).
Consistent with my comments about the integration of Western and Chinese medicine, there will be opportunities to integrate science and technology for the benefit of all those countries willing to participate.
Michael Gentile
CFP, CLU, CH.F.C.
November 2016
It would appear the genie is out of the bottle
Chapter 2
Hardly a day goes by without some mention of China in the media. Offhand I would have to guess that from a global perspective, that a great deal more is being written about China than Canada. I can tell you that I had an opportunity to visit 12 different cities in China and in the process had flight connections through 6 different airports. Needless to say, I also had an opportunity to see a great deal of real estate from both above and on ground.
I often look at and gage the amount of economic activity in a region by the amount of truck and vehicle traffic on the roads.
Beijing is no different except for some rather unique features. The last digit on your license plate determines whether or not you are allowed to drive on one of 5 ring roads on a given day. I did not see a lot of old and decrepit vehicles on the roads. This would suggest that despite all we read and hear, the Chinese have money to spend at home and abroad.
In addition to the manufacturing sector, China continues to invest in infrastructure and agriculture (it seems that they use every available space even under bridges and overpasses to produce food). The bullet train that runs from Yangshou to Guangzhou at speeds of up to 300 km per hour is just another comment on how far they have gone towards advancing their levels of transportation technology. Living conditions in China are rapidly changing as people move into cities and away from their farm roots in search of higher paying jobs in the manufacturing sector. To accommodate these people, developers have built on spec clusters of brick and concrete forests (groups of 12 to 14, 30 to 40 story high-rises). Given the density of population in cities with 20 to 25 million or more residents, there seems to be no other option but to go up. Living conditions do vary and that is a story for another chapter.
In conclusion to this brief essay I would like to share with you on what appears to be the Chinese approach to commerce. If you are at all comfortable with negotiating price then you will be pleased to learn that if you do so, you will earn their respect and you will benefit in terms of a better price. Taking this information to the next level and on a macroeconomic scale, you can now quickly grasp how and to what extent China has been able to put its unique stamp on global economics.
Michael Gentile
CFP, CLU, CH.F.C.
Chapter 2
Hardly a day goes by without some mention of China in the media. Offhand I would have to guess that from a global perspective, that a great deal more is being written about China than Canada. I can tell you that I had an opportunity to visit 12 different cities in China and in the process had flight connections through 6 different airports. Needless to say, I also had an opportunity to see a great deal of real estate from both above and on ground.
I often look at and gage the amount of economic activity in a region by the amount of truck and vehicle traffic on the roads.
Beijing is no different except for some rather unique features. The last digit on your license plate determines whether or not you are allowed to drive on one of 5 ring roads on a given day. I did not see a lot of old and decrepit vehicles on the roads. This would suggest that despite all we read and hear, the Chinese have money to spend at home and abroad.
In addition to the manufacturing sector, China continues to invest in infrastructure and agriculture (it seems that they use every available space even under bridges and overpasses to produce food). The bullet train that runs from Yangshou to Guangzhou at speeds of up to 300 km per hour is just another comment on how far they have gone towards advancing their levels of transportation technology. Living conditions in China are rapidly changing as people move into cities and away from their farm roots in search of higher paying jobs in the manufacturing sector. To accommodate these people, developers have built on spec clusters of brick and concrete forests (groups of 12 to 14, 30 to 40 story high-rises). Given the density of population in cities with 20 to 25 million or more residents, there seems to be no other option but to go up. Living conditions do vary and that is a story for another chapter.
In conclusion to this brief essay I would like to share with you on what appears to be the Chinese approach to commerce. If you are at all comfortable with negotiating price then you will be pleased to learn that if you do so, you will earn their respect and you will benefit in terms of a better price. Taking this information to the next level and on a macroeconomic scale, you can now quickly grasp how and to what extent China has been able to put its unique stamp on global economics.
Michael Gentile
CFP, CLU, CH.F.C.
It would appear that the genie is out of the bottle.
For years I have been telling my clients that the world cannot afford to ignore China.
In only 20 years China has evolved from being an inward looking ultra conservative (communist country) to a global giant. In only 20 years residential and commercial construction has boomed while infrastructure has struggled to keep pace with the overall domestic growth. Clearly, China is on a roll and has considerable momentum working in its favour.
Politics aside, the Chinese have tasted what was previously considered forbidden fruit (Capitalism). I would respectfully suggest that there is no going back to what was before. Because we live in a global village today, we need to not only be aware but also understand the potential impact of China from a global economic perspective.
It has been a given that for many decades the US has been the economic engine of planet earth. Now I am not suggesting that American know how or that creativity is irrelevant or that it should be underestimated. What I am saying however is that there are other players that have a significant impact on global economics.
The current manufacturing environment in China driven by low labour costs from my point of view is not sustainable. It would appear that the Chinese domestic demand alone is having an impact on costs. It’s no secret that China has made a concerted effort to guarantee that there will be sufficient resources to meet their needs on a go forward basis by investing in a broad range of commodities like oil and minerals. As previously mentioned, the Chinese have gone from rickshaws to cars in a very short period of time and they need fuel to power the millions of vehicles on the many new roads they have constructed. The 3 Gorges Hydro Electric Project recently completed is the largest of its kind generating 22,500 megawatts of electricity used to power a massive manufacturing sector.
In speaking with Chinese nationals during my travels throughout China I was able to quickly determine that their political leanings have dramatically shifted in the direction of Capitalism versus Communism. On the Yangtze River (from a ship traffic point of view) the 401 of China, an immense amount of materials and freight is constantly moving up and down the river in order to feed the country’s growing appetite for goods and services.
I think it would be fair to characterize the Chinese people today as very industrious, entrepreneurial and aggressive in their approach towards catching up and potentially surpassing Western growth and technology.
Michael Gentile
CFP, CLU, CH.F.C.
P.S. The country of China now the world’s 2nd largest economy
For years I have been telling my clients that the world cannot afford to ignore China.
In only 20 years China has evolved from being an inward looking ultra conservative (communist country) to a global giant. In only 20 years residential and commercial construction has boomed while infrastructure has struggled to keep pace with the overall domestic growth. Clearly, China is on a roll and has considerable momentum working in its favour.
Politics aside, the Chinese have tasted what was previously considered forbidden fruit (Capitalism). I would respectfully suggest that there is no going back to what was before. Because we live in a global village today, we need to not only be aware but also understand the potential impact of China from a global economic perspective.
It has been a given that for many decades the US has been the economic engine of planet earth. Now I am not suggesting that American know how or that creativity is irrelevant or that it should be underestimated. What I am saying however is that there are other players that have a significant impact on global economics.
The current manufacturing environment in China driven by low labour costs from my point of view is not sustainable. It would appear that the Chinese domestic demand alone is having an impact on costs. It’s no secret that China has made a concerted effort to guarantee that there will be sufficient resources to meet their needs on a go forward basis by investing in a broad range of commodities like oil and minerals. As previously mentioned, the Chinese have gone from rickshaws to cars in a very short period of time and they need fuel to power the millions of vehicles on the many new roads they have constructed. The 3 Gorges Hydro Electric Project recently completed is the largest of its kind generating 22,500 megawatts of electricity used to power a massive manufacturing sector.
In speaking with Chinese nationals during my travels throughout China I was able to quickly determine that their political leanings have dramatically shifted in the direction of Capitalism versus Communism. On the Yangtze River (from a ship traffic point of view) the 401 of China, an immense amount of materials and freight is constantly moving up and down the river in order to feed the country’s growing appetite for goods and services.
I think it would be fair to characterize the Chinese people today as very industrious, entrepreneurial and aggressive in their approach towards catching up and potentially surpassing Western growth and technology.
Michael Gentile
CFP, CLU, CH.F.C.
P.S. The country of China now the world’s 2nd largest economy
September 2016
We are pleased to announce that "Wealth & Finance 2016" has recognized Personalized Investment Planning Inc. with their prestigious wealth and money management award in the category of "Best for Corporate and Individual Financial Planning - Canada".
Sincerely,
MICHAEL GENTILE, B.A., C.L.U., CH.F.C., C.F.P.
President
Sincerely,
MICHAEL GENTILE, B.A., C.L.U., CH.F.C., C.F.P.
President
November 2015
Will CRM2 kill banks' proprietary products? To view Michael Gentile's comments in the following article from the September 2015 Edition of Wealth Professional Magazine, click here.
September 2015
Of Interest to Note:
Consistent with what I have said to you my valued clients on numerous occasions, you will find the linked article from the Tuesday Sept 22nd Edition of the Financial Post. One of the primary reasons we invest in North America and Canada, in particular, is the abundance of natural resources.
The governor of the Bank of Canada makes reference to our natural resources and "that it is far better for a country to have resources than not to have them." He also comments on the fact that the world will continue to need oil, gas, fish, food, minerals and other resources (think potable water).
For years I have been saying that the global population will not quit eating anytime soon and that we will need sources of energy to transport goods and provides services.
In conclusion, please let me know if these needs will be changing anytime soon and I will adjust your portfolio accordingly, otherwise I would recommend that we stay the course and take advantage of the valuable resources that we as Canadians have been so richly endowed with and will need for many generations to come.
MICHAEL GENTILE, B.A., C.L.U., CH.F.C., C.F.P.
The governor of the Bank of Canada makes reference to our natural resources and "that it is far better for a country to have resources than not to have them." He also comments on the fact that the world will continue to need oil, gas, fish, food, minerals and other resources (think potable water).
For years I have been saying that the global population will not quit eating anytime soon and that we will need sources of energy to transport goods and provides services.
In conclusion, please let me know if these needs will be changing anytime soon and I will adjust your portfolio accordingly, otherwise I would recommend that we stay the course and take advantage of the valuable resources that we as Canadians have been so richly endowed with and will need for many generations to come.
MICHAEL GENTILE, B.A., C.L.U., CH.F.C., C.F.P.
We are pleased to announce that "Personalized Investment Planning Inc." has been awarded the 2015 WEALTH & FINANCE INTERNATIONAL Wealth & Money Management Award, having been named "Excellence in Risk Management - Canada" & "Best for Cash Flow Optimization - Ontario". It serves as recognition for our extensive efforts to provide quality service and advice to our clients. We would like to extend a heartfelt Thank You to you, our valued clients for all your support. To review the 2015 winners, please click here.
August 2015
Click here for our Summer Newsletter
April 2015
View Michael Gentile's comments in Wealth Professional "Clients fight to keep embedded commissions" from April 23rd
We are pleased to announce that "Personalized Investment Planning Inc." has been nominated in 2015 for the prestigious "Wealth and Money Management Awards." This would not be possible without the loyal support of our valued clients. We Thank You. Michael Gentile, C.E.O. Personalized Investment Planning Inc.
FEDERAL BUDGET 2015
- TFSA contributions to be increased to $10,000/year
- RRIF required withdrawal rates to be reduced
- TFSA contributions to be increased to $10,000/year
- RRIF required withdrawal rates to be reduced
March 2015
Click here for our Spring Newsletter
July 2014
We are pleased to advise that Personalized Investment Planning Inc. was just recently recognized by the U.S. Trade and Commerce Institute as a 2013 Canadian Excellence Award recipient. We were selected as one of the companies that both meet and exceed the industry benchmarks. Needless to say this is consistent with our long term approach to business and our mission statement "not to meet but to exceed our clients' expectations." We would like to take this opportunity to Thank You, Our Clients, whose loyalty and support has made this award possible.
Sincerely,
MICHAEL GENTILE, B.A., C.L.U., CH.F.C., C.F.P.
President
Sincerely,
MICHAEL GENTILE, B.A., C.L.U., CH.F.C., C.F.P.
President
May 2014
At first glance, the comment "Bank of Canada's Stephen Poloz says interest rates to remain low for years to come" gives the impression that interest rates are not going to move up. We believe the real issue is by how much and when?
We expect rates to begin creeping up in 2014. Interest rates are driven by inflation and while inflation has been relatively benign over the last number of years, one cannot afford to ignore the laws of supply and demand and their eventual impact on interest rates in the future.
As the cost of goods and services (taxes too) begin to climb, the labour market will be looking for wage increases to at least match or keep pace with the cost of living. In conclusion, this is not rocket science but more akin to common sense.
Click here for the corresponding Financial Post article.
We expect rates to begin creeping up in 2014. Interest rates are driven by inflation and while inflation has been relatively benign over the last number of years, one cannot afford to ignore the laws of supply and demand and their eventual impact on interest rates in the future.
As the cost of goods and services (taxes too) begin to climb, the labour market will be looking for wage increases to at least match or keep pace with the cost of living. In conclusion, this is not rocket science but more akin to common sense.
Click here for the corresponding Financial Post article.
April 2014
March 2014
Michael Gentile is featured in http://www.wealthprofessional.ca/news/regulation-creating-a-bulletproof-investor-says-advisor-176715.aspx/
January 2014
The following is a summary of reasons why we have consistently provided our clients with North American Investment Options. I sincerely believe that it is not unreasonable to say that the investment fundamentals remains the same and that it is unlikely that they will change in the near future...
Why We Invest in North America
Why We Invest in North America
October 2013
We continue to recommend that our clients maintain core investments in North America for a variety of reasons, one of which is the need for potable water and the need for sustainability of perhaps the world's most valuable resource. We think this will give you something to think about... http://thinkingbig.fidelity.com/water
May 2012
FOR ONTARIANS, A SUCCESSFUL RETIREMENT REQUIRES A DEBT FREEDOM PLAN "Most people think about savings as the key financial consideration for retirement," stated Mike Gentile, a Chartered Financial Consultant & President of Personalized Investment Planning Inc. in Kitchener, Ontario. "But debt-freedom is a critical consideration for Ontarians, and they find the idea of retiring with debt extremely stressful. An experienced Financial Advisor employs tools such as Cash Flow Analysis and Financial Planning Concepts to assist clients in reducing their debts while giving them an opportunity to increase their tax advantaged savings."
May 2012
FOR ONTARIANS, A SUCCESSFUL RETIREMENT REQUIRES A DEBT FREEDOM PLAN "Most people think about savings as the key financial consideration for retirement," stated Mike Gentile, a Chartered Financial Consultant & President of Personalized Investment Planning Inc. in Kitchener, Ontario. "But debt-freedom is a critical consideration for Ontarians, and they find the idea of retiring with debt extremely stressful. An experienced Financial Advisor employs tools such as Cash Flow Analysis and Financial Planning Concepts to assist clients in reducing their debts while giving them an opportunity to increase their tax advantaged savings."
