Optimism #93 - December 12, 2025
Dear clients and friends,
Santa came early this year with recent dividend increases for the banks, Enbridge, Canadian Tire, Waste Connections, TFI international, Emera, Storage Vault to name a few.
Markets continue to deliver better than expected returns. I became cautious and skeptical of further upside more than a year ago. This tells you how much I know.
Don’t be surprised if there is a pullback in 2026. It’s all part of the process.
If you had large capital gains during 2025 from selling a rental property or something of that nature, you may wish to consult with your Portfolio Manager about tax loss selling. The idea is to sell stocks that are down in price and use that capital loss to minimize tax payable on other gains.
Insiders are buying at Morguard Residential REIT, Cargojet, Altus Group, RioCan REIT, Allied Gold and Dollarama. People sell for many reasons, but there is only one reason they are buying.
I’m reading a book called The Art of Spending Money, by a favourite author Morgan Housel.
His unique background in psychology and finance makes for interesting perspective. Many of us are very good at saving and investing, but not so good at spending.
If this describes you, you are sure to enjoy this read.
I’ve included a related article from the Globe and Mail. Why clients hate spending their savings – and other questions for Morgan Housel
Careless People, a book by by Sarah Wynne-Williams, a former employee at Facebook is worth reading. (If you have one,) how bad would this company have to behave for you to give up your Facebook account? Thank you S.H. for the suggestion.
I recently attended a seminar on quarterly installment payments. Who knew this topic could be so interesting? I must be a nerd.
For example: You are away on an exotic safari and 10 days late on your September 15 tax installment. You have an identical amount due December 15.
You can make up for being late by making the December payment 10 days early. It’s a credit system.
Here is Berkshire Hathaway’s annual letter to shareholders. As usual it’s loaded with humour and wisdom.
A glowing article about the superb quality of Fortis as an investment: This utility is the Swiss train of dividend stocks
Here is one from the Globe and Mail about buying an annuity instead of investing your RRIF. (with an annuity, you give a life insurance company your money and they give you a set amount of monthly income for life).
The glaring error to me is that the writer assumes the investor has 100% invested in bonds. Who would do that? I wonder how it would compare with say 30% or 40% bonds paired with the rest in stocks? Is a life annuity better for men than managing your own retirement withdrawals from savings? - The Globe and Mail
Good news for those with second properties. According to the recent federal budget, it looks like the underused housing tax will be abolished.
“Budget 2025 proposes to eliminate the Underused Housing Tax (UHT) as of the 2025 calendar year. As a result, UHT would not be payable and UHT returns would not be required to be filed for 2025 and all subsequent years. All UHT requirements still apply to the 2022 to 2024 calendar years. Failing to file any applicable UHT returns or pay UHT balances owing for these years will result in penalties and/or interest.”
Budget 2025 defers the implementation of new rules for bare trust reporting, stating the change would now apply to taxation years ending on or after December 31, 2026.
This trust filing issue is proposed to affect those who own joint assets worth more than $250,000 with a non-spouse. You have time to find a workaround.
Here is the full budget review from one of our local accounting firms Crowe Mackay.
Please be extra vigilant with persons connecting with you online or over the phone. Fraud is prevalent. One scam is referred to as ‘pig butchering’.
Pig-butchering scams involve a series of meticulously planned steps to deceive and exploit victims, typically focusing on cryptocurrency investment fraud.
1.Gaining trust: Scams often begin with casual conversations initiated by the scammer, who may pretend to have received the victim's contact details accidentally or through a mutual acquaintance. These initial interactions are designed to build trust and may involve the use of attractive profile images to lure victims.
2.Introducing the investment: As trust is established, the scammer introduces the victim to a fraudulent investment scheme, promising significant returns in a short period. The scammers use persuasive tactics and counterfeit investment portfolios to convince victims of the scheme's legitimacy.
3.Collecting money: After persuading the victim to invest, scammers collect funds, often through digital payment platforms or cryptocurrencies, to complicate tracking and tracing of the transactions.
4.Disappearance of the scammer: Once a substantial amount has been collected, or when victims attempt to withdraw funds, scammers become unreachable, delete their online presence, or create new identities, leaving the victims with no way to recover their funds.
Have a wonderful Christmas season. You deserve it.
Derek Moran
