OK Wow - Where Do Rates Go From Here?

Message from Tom & Nick

OK, Nick BBQ’d his first brisket on the weekend for his oldest daughter’s birthday.

And it came out amazing!

Apparently he cooked that thing for 13 hours.

And it created so much smoke his neighbours came running over because they thought his house may be on fire.


I’m not sure if I was hungrier than usual or what, but I devoured a huge piece of that thing.

Over the years, we’ve roasted pigs, lambs, prime ribs, and enjoyed some amazing steaks.

But somehow we’ve missed the brisket.

That changes now! It was so incredible that I’m already thinking about the next one.

And speaking of fire and smoke and people getting alarmed…what the heck is going on with interest rates in this country?

Are we doomed to higher and higher rates forever?

Will they come tumbling down from here?

Does the real estate market throw up?

Does the global economy have a panic attack?

Fascinating times.

Here’s what we do know…

1. Central Bankers Have NO CLUE What They're Doing

The central planners at the Bank of Canada, the U.S. Federal Reserve, and the European Central Bank have absolutely no clue what they’re doing.

When Covid broke out in 2020, we were told rates would stay low until 2024.

In the Fall of 2021, we were told that inflation was “transitory” and would come tumbling down in short order.

In the Spring and Summer of 2022, these same central bankers are raising rates like their hair's on fire.

These same central bankers are now telling us rates will go up further as needed…so prepare yourselves.

It’s a complete mess.

You cannot centrally plan a global, complex economy…it just doesn’t work. There are too many moving parts for a small group of people to dictate the price of money.

The system, she is broken.

The economic data we’re looking at is all pointing to a major economic slowdown that is currently underway.

We have NEVER seen central banks raise rates into a recession like this.


It’s uncharted territory.

2. Rate Hikes and Record Inflation are Global Issues

Bank of America analyst came out yesterday and shared that the impacts of these rates are making the U.S. Treasury market insanely volatile and introducing systemic liquidity risk.

Mainstream bank analysts rarely speak with such language unless things look wonky in the world of money and debt.

We haven’t heard talk like that since 2008, during the great financial crisis.

And today we have more debt in the world and a more interconnected global economy than ever.

Check out the Japanese Yen as an example…it’s throwing up on these rate hikes and is having its worst plunge in value in 30 years.

So the Bank of Canada’s rate decision yesterday goes beyond Canada and beyond Canadian housing. This is a global situation.

3. A Quick Breakdown of Where Rates Might Go From Here

In this week’s brand new Rock Star Minutes episode, we break down some of the data points we’re looking at to understand where rates may go from here.

If you’re a real estate investor this is important stuff to keep aware of.

If you’re a homeowner with a mortgage this is important stuff to understand.

If you’re looking to get into the market you should pay attention to this.

Basically, we believe, it’s critical for all Canadians to ramp up their understanding of the financial system.

That’s why we’re sharing this type of stuff.

It can be slightly complex, but it’s helpful in making sense of the world right now.

You can check out this brand new Rock Star Minutes episode “2023 Canadian Interest Rates - Up or Down or Sideways?” by clicking right here.

4. What We're Doing to Protect Ourselves & Our Families

Here’s what we’re doing to protect our family’s financial situation through these absolutely unprecedented times:

We are working to own and hold the best possible assets that we can.

For us that’s good income property in good areas, Bitcoin, and cash flowing businesses.

And as prices of things like real estate and Bitcoin gyrate wildly through this time, we feel comfortable in our belief that going forward the governments and central banks must print unimaginable amounts of new currency to keep the economy afloat.

So although prices of these things may be down right now, we’re happy to own them because we don’t like what we see on the horizon of the next 18-24 months.

We’ll see if our guess is right…but we’re expecting a huge amount of new money printing and M2 growth to make global interest payments & energy costs manageable, and debt levels sustainable.

So this week, we leave you with two things:

  1. Check out the Rock Star Minutes episode on this right here: 2023 Canadian Interest Rates - Up or Down or Sideways?
  2. If you’d like to hear how we’re working with real estate investments through these times, you can register for the Introductory Free Real Estate Training class we’re holding next Thursday, Sep 15 by clicking right here.

We hang around at the end of the class to answer any questions you may have.

We focus mostly on the Greater Toronto and Golden Horseshoe areas.

That’s it for this week, everyone!

Go out and find a patio while you still can! We are!!

And remember, life always moves on. No matter what madness is going on in the economy, somehow things have a way of working out.

There is opportunity everywhere if you’re looking for it.

Stick to your plan, stay positive, keep moving!

It’s one life and it’s super short…always live it on your terms.

Tom & Nick

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