stocks

Finding Calm in Market Storms : The Power of Shinrin-Yoku

/ Jesse Ogloff
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When market volatility leaves you feeling anxious, it might be time to step away from the screens and into the trees. The Japanese practice of Shinrin-Yoku, or “forest bathing,” is a simple yet powerful way to destress and reset your mind.

Shinrin-Yoku is all about immersing yourself in nature, allowing the sights, sounds, and smells of the forest to wash over you. Studies have shown that spending time in nature can lower cortisol levels, reduce blood pressure, and improve overall mood. In essence, it’s a natural antidote to the stress that comes with market fluctuations.

By taking a break to reconnect with nature, you’ll return to your financial challenges with a clearer mind and a refreshed perspective. Plus, the health benefits of forest bathing extend beyond stress relief, boosting your immune system and enhancing your creativity—both of which are invaluable for making sound financial decisions.

So, the next time the markets get rough, consider swapping your investment statements for a walk among the trees. Your mind—and your portfolio—might thank you.

For personalized guidance, contact me at info@financerx.ca.

What Just Happened? Breaking Down The Last Week.

/ Jesse Ogloff
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Markets took a hit after President Trump’s “Liberation Day” tariff announcements on April 2. The S&P 500 dropped more than 10% over two days, wiping out over $5 trillion in market value. This follows a tough first quarter, where the index was already down 5.6% — its worst start to the year in three years.

As of April 4, the S&P 500 had fallen 17.5% from its February highs, making this one of the fastest corrections in over a century. Investors were caught off guard, not just by the size of the tariffs, but also by the way they were applied. Rather than following typical trade rules, the U.S. targeted countries with large trade surpluses, leading to higher-than-expected tariffs in some areas. The result? Greater uncertainty, rising inflation fears, and talk of potential stagflation.

Some countries, including China, have already started to respond with their own retaliatory measures. In the days ahead, markets will be watching closely to see which countries are willing to negotiate — and which ones push back.

Canada Avoids New Tariffs (For Now)

Canada and Mexico were notably left out of the new tariffs. Trade under the USMCA agreement remains tariff-free, covering roughly 80% of Canadian exports. However, existing tariffs on steel, aluminum, and autos are still in place.

Interestingly, Canada’s stock market has been a bright spot. The TSX gained 1.5% in the first quarter, outperforming the S&P 500 by nearly 6%. With a federal election approaching, there’s growing momentum behind pro-growth policies. Longer term, Canada continues to offer structural strengths: a skilled workforce, rich natural resources, and clean, affordable energy. The TSX is also trading at a significant discount to the U.S. market, despite having similar earnings potential and multiple growth drivers ahead.

What to Watch Next

There are a few reasons for cautious optimism:

• Some U.S. senators are pushing back against Trump’s tariff authority, which could limit future actions.

• There’s a chance some tariffs could be reduced before they take effect on April 9.

• Legal challenges may emerge, as parts of the policy may not hold up in court.

• Finally, March’s employment data remains strong, suggesting the job market is holding up — for now.

When Markets Pull Back, Long-Term Investors Can Step Forward

Volatility and pullbacks can feel unsettling — but they’re often where long-term investors find their best opportunities. When market sentiment turns negative, prices can become disconnected from fundamentals. That creates moments where strong companies or sectors become available at a discount.

If you have a long-term plan and a well-diversified portfolio, downturns like this can be a time to reassess and rebalance — not to panic. Market corrections are part of the investment journey, and historically, they’ve often paved the way for future gains. In times like these, staying focused on your long-term goals is more important than ever.

Strategies for Canadians Amid U.S. Tariff Changes

/ Jesse Ogloff
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Another week, another round of tariff talk between the U.S. and its trading partners. If you’re wondering what that actually means for your wallet, your car, or your job—let’s break it down.

The U.S. recently reintroduced tariffs (taxes on imports) on certain automotive parts. There was a one-month pause, but that didn’t lead to any real change. Now, Canadian vehicles that use U.S. parts—or even U.S. vehicles made with Canadian or Mexican components—are at a disadvantage compared to cars from Europe or Asia.

As Canadians, we should all care about this because Canada’s auto industry, especially in Ontario, supports over 100,000 jobs. If tariffs make Canadian-made cars more expensive, that could lead to job losses, higher prices, and economic slowdowns.

There are many options as to how we should respond and I’d like to share some of my thoughts:

• Don’t: Tariff U.S. auto parts we depend on.

That would only raise production costs for Canadian carmakers—and hurt us more than the U.S.

• Avoid: A blanket tariff on U.S. vehicles. It would push up car prices in Canada and invite more U.S. retaliation. Plus, some U.S.-made cars still use Canadian parts.

If we’re smart, there are some alternative moves that we can make:

• Incentives to stay.

Offering tax breaks or credits to carmakers to keep plants in Canada could help soften the blow—as long as it doesn’t look like a subsidy that invites more tariffs from the U.S.

• Careful negotiation.

A new U.S. “reciprocal tariff” plan may be more measured than the previously threatened 25% tax on everything. Canada needs to tread carefully and use diplomacy to avoid escalation.

Canadian nationalism is at a multi-year high right now and we can all help, believe it or not — your choices matter. We can buy Canadian-made products, consider non-U.S. travel destinations whenever we are travelling, and support Canadian retailers and auto dealers.

This “vote with your wallet” approach is already happening—and (most importantly) it doesn’t trigger political backlash. In fact, a grassroots consumer shift could do more to influence U.S. economic policy than tariffs alone.

All-in-all, Canada needs to balance firm negotiation with strategic patience. Tariffs are costly for both sides—but consumer behavior, smart policy, and focused diplomacy might be our best bet to get the U.S. to ease off.

The next time you’re deciding where to buy your car—or even where to vacation—remember: your dollar can speak louder than a tariff.

Market Bubbles : Why We Get Caught Up and How to Stay Smart

/ Jesse Ogloff
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Ever heard the saying, “What goes up must come down”? That’s exactly what happens in market bubbles. Prices of stocks or other investments skyrocket, everyone rushes to buy, and then—boom—the bubble bursts, and prices crash. The tricky part? People rarely see it coming.

But what is a bubble, and why do they happen? More importantly, how can you protect yourself from getting caught up in one?

The Emotional Side of Investing

When we think about market bubbles, we usually picture stock prices climbing higher and higher. But the real force behind a bubble isn’t just numbers—it’s human emotion.

The biggest culprit? The fear of missing out (FOMO).

When you see your friends, neighbors, or coworkers making big money on an investment, it’s tempting to jump in too. Nobody wants to feel left behind. But this excitement can cause people to ignore warning signs. They stop asking, “Is this a smart investment?” and instead think, “If I don’t buy now, I’ll miss my chance!”

That’s how bubbles start: everyone wants in, demand surges, and prices rise far beyond what the investment is actually worth. But eventually, reality sets in—prices can’t stay high forever. When people finally realize this, they panic and sell, and the bubble pops.

New Trends, Same Mistakes

Most bubbles are fueled by something exciting and new. Whether it’s a new technology, a booming industry, or a “can’t-miss” investment, people get caught up in the hype.

Look at the internet in the late 1990s. Everyone knew it would change the world, and it did. But during the Dot-Com Bubble, investors threw money at any company with “.com” in its name, even if it had no real profits. Eventually, reality hit—many of those companies failed, and stock prices crashed.

The lesson? Just because something is new and exciting doesn’t mean it’s worth any price. Investing wisely means looking past the hype and asking, “Is this actually a good business?”

Big Companies Don’t Stay on Top Forever

Another mistake people make during bubbles is assuming that the biggest companies will always stay successful. History tells a different story.

Take Kodak, Xerox, and Polaroid—once giants in the business world, now barely relevant. Industries change, new competitors emerge, and technology evolves. Betting that today’s winners will always be on top is risky, especially if their stock prices are already extremely high.

If you’re investing in big-name companies, make sure you’re paying attention to their long-term potential—not just their recent success.

What Happens When the Bubble Bursts?

When a bubble pops, prices don’t just dip—they crash. Investors who bought in too late find themselves with big losses. Worse, many lose confidence and sell at the worst possible time.

The best investors stay calm and avoid getting caught up in the madness. Instead of jumping in when prices are high, they keep some cash on hand and wait for opportunities to buy when prices fall. It takes patience, but those who avoid the rush often come out ahead.

How to Avoid the Trap

So, how can you protect yourself from falling into a bubble? Here are some simple rules:

1. Don’t invest just because “everyone else is doing it.” If something feels too good to be true, it probably is.

2. Ask yourself if the investment makes sense. Is it a strong, profitable business, or just popular at the moment?

3. Be patient. Good investments don’t need to be rushed. If a stock has already skyrocketed, it may be too late.

4. Have a long-term plan. Instead of chasing quick profits, focus on building steady wealth over time.

5. Keep some cash available. When the bubble pops, there will be bargains—but only for those who are ready.

The Bottom Line

Bubbles happen because people get caught up in excitement and stop thinking critically. The key to avoiding them is to stay rational and not let emotions take over your investment decisions.

My specialty is to help investors stay focused on smart, long-term strategies instead of chasing the latest market trends. If you’re looking for guidance on building wealth safely and avoiding market traps, contact me at info@financerx.ca.

Are You Living Too Frugally?

/ Jesse Ogloff
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Many people assume that financial security is purely about numbers—having a stable income, a well-funded retirement plan, and an emergency cushion. But in reality, financial well-being is just as much about mindset as it is about money.

There are plenty of people who are in a strong financial position but still feel uneasy about spending, constantly worrying that they don’t have enough. They deny themselves experiences, avoid making financial moves that could improve their lives, and operate under an unnecessary sense of scarcity.

If this sounds familiar, the question you need to ask isn’t “Do I have enough?” but rather “Why do I feel like I don’t?”

The Scarcity Mentality: A Barrier to True Financial Freedom

A scarcity mentality is the persistent belief that your resources are limited, even when the numbers suggest otherwise. It creates an underlying fear of financial instability, making it hard to enjoy the money you’ve worked so hard to earn.

This way of thinking can manifest in different ways:

• Over-saving at the expense of enjoying life – Hesitating to take trips, make upgrades, or spend on meaningful experiences, even when it’s affordable.

• Paralysis in financial decisions – Avoiding investment opportunities or wealth-building strategies due to fear of loss.

• Chasing financial trends out of fear of missing out – Feeling pressure to jump into the latest stock, cryptocurrency, or investment trend to “keep up.”

The problem isn’t necessarily financial—it’s psychological. When people get stuck in a scarcity mindset, they often make decisions from a place of fear rather than logic, which can limit their potential and negatively impact their overall well-being.

Where Does This Fear Come From?

A scarcity mentality is often shaped by personal history and environment. Some common influences include:

• Growing up in a household where money was tight – Early financial stress can stick with people for life, even when they’re in a much better situation as adults.

• Life events that created financial uncertainty – Job loss, divorce, economic downturns, or unexpected setbacks can lead to long-term financial anxiety.

• The influence of social comparison – Constant exposure to other people’s wealth (or the illusion of it) can make individuals feel like they’re always behind, even if they’re in a great position.

• Cognitive biases that exaggerate financial risk – The human brain is wired to focus more on potential losses than potential gains, making it easy to fear worst-case scenarios that may never happen.

If left unaddressed, these factors can cause people to hold onto unnecessary financial fear, even when their financial reality is stable and secure.

Breaking Free from an Unnecessary Scarcity Mindset

The first step in shifting out of a scarcity mindset is recognizing it. Ask yourself:

• Are my financial fears based on facts or just feelings?

• Am I holding back from things I can afford due to irrational concerns?

• Have I let past experiences dictate my current financial choices?

If you notice a pattern of fear-driven decision-making, it may be time to challenge those thoughts and make a conscious effort to change your approach.

1. Reframe Your Financial Perspective

Whenever an anxious financial thought arises, step back and ask:

• Is this worry based on real numbers, or just fear?

• If the worst-case scenario did happen, would I truly be unprepared?

• Am I focusing too much on what could go wrong instead of what is likely?

2. Stop Letting Fear Control Your Financial Choices

If your financial plan is solid, give yourself permission to enjoy what you’ve built. Money is a resource meant to provide security and enhance your quality of life—not something to be stockpiled out of fear.

3. Get an Objective Financial Perspective

One of the best ways to combat financial anxiety is to work with a fiduciary professional, like a Certified Financial Planner, who can provide an objective view of your situation. A trusted CFP can help you see where you truly stand, ensuring your decisions align with logic rather than unnecessary fear.

Make Sure You’re Living the Life You Can Actually Afford

If you have the means to enjoy life but are holding yourself back, it may be time to adjust your financial mindset. A good financial plan isn’t just about making sure you’ll never run out of money—it’s also about making sure you use your money wisely to build a fulfilling life.

There’s a difference between responsible planning and living in fear. Make sure you’re not letting an outdated mindset rob you of the life and retirement you can genuinely afford.

For personalized guidance, contact me at info@financerx.ca.

Uncertainty Around Proposed Capital Gains Tax Changes in Canada

/ Jesse Ogloff
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Earlier in 2024, the Liberal government proposed significant changes to Canada’s capital gains tax rules. The plan aimed to increase the capital gains inclusion rate from 50% to 66.67% for corporations and trusts and introduce a higher inclusion rate for individuals on annual capital gains exceeding $250,000. The changes were set to take effect starting June 25, 2024.

However, the resignation of Prime Minister Justin Trudeau and the prorogation of Parliament have stalled the legislative process required to implement these changes. As of now, the proposed adjustments have not become law. This legislative pause has created uncertainty for taxpayers, especially those preparing for year-end financial planning.

Initially, the Canada Revenue Agency (CRA) signaled that it would apply the proposed rates to capital gains realized after June 25, 2024. With Parliament effectively reset, any motions related to the tax changes would need to be reintroduced when the House of Commons resumes. In the meantime, tax professionals advise individuals and corporations to prepare for the possibility of increased capital gains taxes, with the potential for refunds should the legislation fail to pass.

Until the government provides further clarification, taxpayers are encouraged to consult their financial advisors to ensure their investment and tax strategies align with both current rules and potential changes.

For personalized guidance on navigating uncertain times, contact me at info@financerx.ca.

Riding Market Waves : A Surfer’s Guide to Investing

/ Jesse Ogloff
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Investing is like surfing. You don’t control the waves, but you can position yourself to catch them. Patience, preparation, and staying calm in turbulent waters are essential. It’s also about understanding that waves come in cycles, and missing one doesn’t mean you’ve missed your chance entirely. The key is to stay in the water and ride the wave when the opportunity arises.

What characteristic does a surfer need more than anything else? If you said adaptability, you’d be right. Surfing is about responding to the environment—reading the waves, positioning yourself, and timing your movements. Investing is remarkably similar.

When you paddle out into the ocean, you’re placing yourself in a vast, unpredictable environment. There will be periods of calm where nothing seems to happen, times of turbulence when waves crash relentlessly, and moments of exhilaration when you finally catch the perfect wave. Successful surfers don’t leave the water just because conditions aren’t ideal—they wait, they prepare, and they adapt. The same principles apply to investing.

Preparation: Choosing the Right Spot and Equipment

Before a surfer ever catches a wave, there’s preparation: selecting the right beach, the right board, and understanding the tide and weather conditions. Similarly, before you invest, you need to know your goals, assess your risk tolerance, and choose the right financial tools. Are you aiming for steady, small gains (the equivalent of riding gentle waves on a longboard), or are you comfortable chasing bigger, riskier opportunities (the bigger, thrilling waves that require a shortboard)?

Just as every beach and wave is different, every investor’s journey is unique. This is where a financial advisor acts as a guide—helping you identify the “surf spot” that matches your financial aspirations. An advisor ensures you have the right tools and strategies in place before you paddle out into the financial waters.

The Waiting Game: Patience is Key

The ocean doesn’t deliver perfect waves on demand, and the market doesn’t deliver constant returns. Surfers spend a lot of time floating, watching, and waiting for the right wave to come along. It requires patience and trust in the process.

Investors, too, must resist the urge to act impulsively. It’s tempting to chase every market trend or head to the beach when the conditions aren’t working. However, those who wait patiently and stick to their plan are better positioned to catch the next big wave of opportunity.

Timing: Don’t Chase the Wave—Position Yourself for It

Catching a wave requires positioning, timing, and confidence. Paddle too early, and you’ll tire yourself out. Paddle too late, and the wave will pass you by. The same goes for investing. Trying to “time the market” perfectly is nearly impossible. Instead, focus on positioning yourself with a long-term strategy so you’re ready to benefit from the market’s natural momentum.

One of the biggest mistakes surfers make is paddling frantically toward every wave they see. The same goes for investors who try to chase every hot stock or trend. It’s exhausting and rarely effective. Instead, surfers watch and anticipate, recognizing that the ocean will always offer another wave. Likewise, investors must understand that markets move in cycles, and missing one opportunity doesn’t mean they’ve missed their chance entirely.

Staying Calm in the Swell: Navigating Market Volatility

When you’re out in the ocean, not every wave is rideable. Some are too big, too small, or don’t have the right form. Surfers learn to navigate the swell, staying calm even when waves crash over them. Investing also has its share of volatility. Markets rise and fall, sometimes dramatically. The key is to stay calm, keep your eyes on the horizon, and avoid rash decisions.

For example, when a wave crashes unexpectedly, an inexperienced surfer might panic and paddle back to shore. Similarly, investors often sell their holdings during a market downturn, locking in losses and missing out on the recovery. Experienced surfers know that poor waves—like negative markets—are temporary. The best approach is to stay in the water and focus on the next opportunity.

The Big Picture: Riding the Wave to Success

When a surfer catches the perfect wave, it’s the result of preparation, patience, and resilience. It’s not just about the ride; it’s about all the effort that went into being in the right place at the right time. Investing is no different. Long-term success comes from sticking to a well-thought-out plan, staying disciplined during turbulent periods, and positioning yourself to take advantage of the market’s natural upward momentum.

The Bottom Line

Surfing and investing share a fundamental truth: you can’t control the waves, but you can control how you respond to them. With patience, preparation, and a steady hand, you’ll be ready to ride the wave when the opportunity arises. So, stay in the water, trust your plan, and keep your eyes on the horizon—the next big wave might be closer than you think.

Email me at info@financerx.ca.