Welcome to The Wealth Exchange — the podcast that focuses on addressing the issues affluent families across Canada face everyday — from buying a vacation home

to selling your business, and tax planning to philanthropy. Your host is Mark Therriault, the Financial Advisor and partner of Nicola Wealth Management.

This episode, Mark has a great conversation with Nicola’s Chief Investment Officer, Rob Edel. Mark and Rob dive right into his monthly market commentary, discussing ‘the Trump factor'; where he sees headwinds in regards to both the Canadian and the U.S. economy; and current events such as facebook correction, marijuana stocks, and cryptocurrency. Rob also talks about what is driving the change of short term and long term interest rates, what he looks for when looking at a company to invest in, as well as his thoughts on NAFTA and the looming possibility of a future trade war.

Key Takeaways:

[:29] About this week’s episode with guest, Rob Edel.

[1:41] Does Rob see the volatility in the market based on ‘the trump factor’ of fears or is it more fundamentally based?

[3:08] The top two headwinds that Rob fears in terms of economic slowdown.

[4:13] Rob explains what is driving the change of short term interest rates going up and long term interest rates staying flat.

[5:49] Do bonds still serve as a safe asset in a portfolio (even with interest rates being low)?

[7:04] How does Rob and his team view volatility with regards to how they manage the equity portfolios?

[9:09] When Rob is looking at a company to invest in, what is he looking for (in terms of preparing for potential headwinds mentioned earlier)?

[9:53] What Rob sees playing out in regards to NAFTA and the current potential of a trade war happening in the world of politics.

[11:42] Does Rob think Donald Trump has a good strategic plan?

[13:39] Does Trump have the proper bargaining chips to actually go after a better deal with China and NAFTA?

[14:58] How does Rob see the potential trade wars playing out?

[17:05] What Rob’s biggest concern is about the Canadian economy in the short term.

[19:22] Rob’s concerns about the U.S. economy in the short and long term.

[20:46] Is Facebook a company or stock that Rob likes? Is it a buying opportunity with technology becoming such a large part of the market? And his thoughts on FANG.

[28:35] About the growth in the marijuana industry and the evaluations Rob is seeing in the market.

[30:41] Does Rob see there being other commodities or industries that are going to become more in-demand because of low supply? And more thoughts on the marijuana industry.

[34:13] Why are companies moving towards accepting cryptocurrency when we are seeing an insane amount of volatility?

Mentioned in this Episode:

Nicola’s Strategic Outlook Seminars

NAFTA

FANG

The Four: The Hidden DNA of Amazon, Apple, Facebook, and Google, by Scott Galloway

Bitcoin

Guest Bio

More About Rob Edel

Rob is the Chief Investment Officer at Nicola Wealth Management.

Before joining the team at Nicola, Rob spent 9 years working for one of Canada’s largest money managers and — most recently — as a Portfolio Manager responsible for managing U.S. equities for the firm’s high net worth clients. Previous to that, he spent seven years working for the Treasury Department of a Major Canadian Chartered Bank, splitting his time between Vancouver and Toronto. Rob has completed his CFA and is a member of the Association for Investment Management and Research (AIMR).

For his full bio, visit: nicolawealth.com/our-team/rob-edel

About Your Host — Mark Therriault

Mark is the Financial Advisor and partner of Nicola Wealth Management — and your host for The Wealth Management podcast.

As a member of the NWM Planning Team since 2006, Mark has become his clients’ trusted advisor. He prides himself on providing an exceptional experience to his clients while quarterbacking their financial affairs.

Mark earned his Bachelor’s degree in Economics with a minor in Finance from the University of Calgary. He went on to secure his CFP designation and also completed the CIM, CSC, the B.C. Life Insurance License.

For his full bio, visit: nicolawealth.com/our-team/mark-therriault

For More Information on this Week’s Episode, Visit:

www.nicolawealth.com/thewealthexchange

Disclaimer:

This presentation contains the current opinions of the presenter and such opinions are subject to change without notice. This material is distributed for informational purposes only and is not intended to provide legal, accounting, tax or specific investment advice. Please speak to your NWM Advisor regarding your unique situation. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. NWM fund returns are quoted net of fund-level expenses. Past performance is not indicative of future results. All investments contain risk and may gain or lose value. Projected returns are estimates only. Returns are not guaranteed. NWM is registered as a Portfolio Manager, Exempt Market Dealer and Investment Fund Manager with the required provincial securities’ commissions in Canada.