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Cardinal Capital – August Update

North Korea – What Should An Investor Do?

  • We are all worried about the current standoff with North Korea. Kim Jong-Un took over as Leader of North Korea in 2011 and has launched 17 missile tests in 2017 alone; more tests than in 20 years from 1991 to 2011 before he took charge. The problem is that North Korean missile technology has improved enormously in the past few years versus previous decades when it was common to hear the country announce a missile test only to have it fail to launch………
  • The trouble with attempting to move to cash in advance of one of these events is that markets tend to start moving sharply higher well before the crisis in question is actually resolved. And of course, there is also the very real possibility that the situation does not get worse, in which case investors will likely drive the market higher in a relief rally. As an investor, doing nothing can feel like a difficult move, but history suggests it is the best move.

Click here to read more:  Cardinal Update – August 2017


Charitable Gifting with Shared Ownership Universal Life Insurance

Many individuals have realized their charitable aspirations by donating a life insurance policy to the charity of their choice.  In situations where that donation is a Universal Life policy, the use of a Shared Ownership strategy could prove to be a viable investment for the donor.

Shared Ownership refers to an arrangement involving cash value life insurance policies such as Universal Life.  Universal Life combines life insurance with an investment fund which grows tax deferred until the cash value is withdrawn.  If the cash value is paid out at death, the growth is tax free.

Under Shared Ownership, the life insurance and the cash value would have different owners and beneficiaries and would be structured as follows: Read more »


Cardinal Quarterly – July 2017

MARKET OUTLOOK – The global economy continued to strengthen in the second quarter with Canada’s GDP leading the pack at 3.7%. The Canadian economy has been boosted by continued strength in the housing market, the weak Loonie, and decent economic growth in the U.S. The long-struggling European economy has also been showing signs of life after consistently weak growth for most of the past decade. Sooner or later, improving growth in the global economy will lead to higher inflation, which is causing most central banks to reconsider their loose monetary policies.

Click here to read more:  Cardinal Quarterly – July 2017