… Meanwhile in Canada … The Bank of Canada, as we all know, is already well into it … the $60,000 question or more for everyone remaining: are THEY (the CB folks) coming to the rescue soon enough or too late? Let’s remember after all that the well documented lags to policy response mean neither tightening nor easing take immediate effect overall (even though mind you, for the variable mortgage folks out there, there is a more instantaneous satisfaction and relief). Now, and here maybe is a doozy – I am happy Air Canada and its pilots union recently reached a labour agreement! Yeah! That, btw, enabled me to get back to Calgary as opposed to being stranded in Europe … so again, thank you 🙂 But amidst luggage fee hyperinflation, declining service standards and frankly customer care overall here there and everywhere, am I missing something (?) or does the 42% increase over 4 years not spell – you guessed it: rising prices! So, inflation … well, maybe that “genie” isn’t yet quite back in its bottle. Oh, but all is good, because soon we could get a Liberal Tsar to deal with all things “Canadian sclerosis” aka the fact we have no productivity in Canada AND no economic growth to speak of … Btw don’t keep your fingers crossed … Mark Carney to the rescue … but as far as the fingers crossed – well, so many things HERE in Canada have been spoken about and initiatives undertaken that – it’s not funny … the only missing piece is the actual deliverables and achievements. In terms of those, the country hasn’t had much in the way of positives to highlight overall for quite some time … Unfortunately. Anyways back to Air Canada, let’s remember the (very) many sectors in which competition in Canada is much more token than fierce. For the rest – in terms of the broader market pivot, it is now clear that interest rates sensitives should continue their recent and strong outperformance (after an extended period of weakness). Bond duration extension is likely advisable; financials, real estate, utilities etc should all benefit. Gold – imo should also continue to show strength. Commodities – one would think so (particularly if accompanied by USD weakness…), although they haven’t really done all that well recently – but don’t lose hope! Now, for the exciting part, in my opinion! The impact of an accelerated sequence of aggressive rate hikes to fend the resurfacing of inflation subsequently now making room for easing credit conditions looks to present plenty of opportunities in markets overall. A case of now observing who got caught without a bathing suit as the tide went out, as it were. The trick with all of this of course is that this could be accompanied by plenty volatility, and as well, of course, that: a) public markets represent but a fraction of the overall picture, and b) obviously not everyone has the ability, scale, financial resources and wherewithal overall to pounce and capitalize on the opportunities presented. We – at Arbutus Partners – are pleased to report that several of the Private markets players we represent a) are going on the offense b) have attractive investment vehicles through which to participate in the opportunities they uncover as you access their core competencies in the space. A case – as one of them put it – to take advantage of “dislocation creates opportunities”. Lots to talk about then – and lots of opportunities to improve both the returns and risk profiles of your and your clients’ portfolios, with significantly enhanced reach, as far as the areas, niches, and categories within which to seek to generate attractive returns – by engaging with experienced and proven players in the category. Good … AND Different – Arbutus mantra’s as we seek to bring you “tomorrow’s winners – today”.