Market Commentary: Tightening Rates, Inflation and the Ever-Pending Recession


PODCAST April 17, 2019


Show Summary:

With the Federal Reserve’s tightening rates, inflation, the threat of trade wars, and the ever-pending recession — Rob Edel gives his insights on the last quarter and what to expect in 2019 and beyond. He discusses the corrections in the Canadian, U.S., and global markets; how much tax reform played a part in the U.S. economy slowing down from last year; what he thinks is the major factor for why Canada is showing good employment numbers but lacks wage growth; his take on what the Canadian and U.S. market would do if the next recession hits; and his predictions and thoughts about the current Canadian economy!

Join Mark Therriault, and recurring guest, Rob Edel, to hear this quarter’s Market Commentary!


Key Takeaways:

[:29] About today’s episode.

[:47] The driving force behind the corrections in the Canadian, U.S., and global markets on a macro level.

[2:55] Does Rob think that both the Fed and the Canadian government waited too long to raise rates in the cycle?

[4:35] How much did tax reform play a role in the U.S. economy slowing down from last year?

[5:50] What Rob thinks the catalyst is in the good employment numbers in Canada but lack of wage growth.

[6:35] Does Rob see the tightening rates staying somewhat steady as far as the Federal Reserve?

[7:53] Rob’s thoughts on what the Canadian and U.S. market would do if the next recession hits.

[9:57] Is there going to be a recession this year or next year? And what’s going to keep things accelerating, going forward?

[11:30] Rob’s predictions on what the changes might be towards the end of the cycle.

[15:00] Rob’s current thoughts about the Canadian economy.


Mentioned in this Episode:

Modern Monetary Theory

Consumer Confidence

Inflationary Expectations


Guest Bio

Rob Edel

Rob is the Chief Investment Officer at Nicola Wealth.

Before joining the team at Nicola Wealth, Rob spent nine 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/ourteam/robedel


About the Host — Mark Therriault

Mark is the Financial Advisor and partner of Nicola Wealth — and host of The Wealth Exchange podcast.

As a member of the Nicola Wealth 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/OurTeam/MarkTherriault


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



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 Nicola Wealth 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. Nicola Wealth 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.