[Craic] FW: Charity Account - Community Counts Foundation

[David Walsh]

My brother Tom is on a Jesuit Investment Committee that recently met with reps from BMO who manage the ‘Sustainable Opportunities Global Fund’ that the Jesuits invest in.

Below is their assessment of the current situation.

David

From: Thomas Walsh <thomas at carrotcommon.com>
Sent: June 23, 2021 3:09 PM
To: David Walsh <david at dwalsh.ca>
Subject: Re: meeting with BMO

Hi David,
My takeaway from the BMO meeting is that the new "normal" involves a paradigm shift with governments  being comfortable with issuing huge amounts of debt at the expense of future generations. BMO expects this to continue for at least the next 5 years with continued low interest rates.  Technological change is also central to the new "normal" - things won't be as before as the technological sector rolls out new products.  They don't expect high inflation, perhaps in the 3-6% range, after this year.   Bonds are an investment with next to no return as purchasing power is lost,  with Germany currently offering 10 year bonds at a -2% negative rate.

Returns in Canada can be expected to be between 6 and 9%.   They said the USA has the best business investment environment, followed by Canada with the laggard being Europe.    BMO says 70% of Canadians own their homes (with mortgages) and that real estate continues to be one of the better places to invest in.

They expect the global trading patterns of supply chains to continue. BMO seems to be taking seriously that their clients want ethical investments and are adding more analysts and expanding this side of their business.

Wild cards are climate change and ongoing pandemics.
Tom

 Thomas Walsh
Carrot Common Property Manager
348 Danforth Ave, Suite 211
Toronto,  ON    M4K 1N8
Mobile:  647-642-3509
Email:  thomas at carrotcommon.com<mailto:thomas at carrotcommon.com>


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