by | Jan 4, 2024 | Articles

Need some good news? Things may be better than they seem.

Understandably, consumer sentiment has lingered at low levels. We’ve been through a lot lately. We’ve persevered through a pandemic, only to face new challenges on the other side, many of which have come about quickly: a substantially higher cost of living, higher interest rates and ongoing global conflict, to name a few.

Yet, according to a recent article in the The Economist, our collective feeling does not accurately reflect actual economic data.1 Since the pandemic, there’s been a growing divergence in sentiment and economic performance.

Indeed, the significant strides we’ve achieved during this economic cycle shouldn’t be overlooked. In Q3, U.S. GDP was reported at 4.9 percent — the highest economic growth since 2014, after adjusting for the pandemic.2

While Canada has been challenged by sluggish growth, we shouldn’t forget this was the central banks’ intention in raising rates to curb inflation. Over the past two years, economic resilience has surpassed expectations, partly due to low unemployment rates. Canada’s fell to its lowest level on record in June/July 2022, at 4.9 percent, and continues to remain at relatively low levels.3 The latest data shows that Canadian household net worth increased for the third consecutive quarter, by 3.4 percent to reach $15,704 billion in Q1 2023.4 In Q2, U.S. households held the highest levels of net worth ever recorded.5 Households have never been wealthier. The year that has passed serves as a reminder that things can often unfold much differently than predicted. Despite the many challenges, both economies and households have remained comparatively resilient.

This isn’t to suggest there aren’t challenges ahead. However, reflecting on the positive economic outcomes over 2023, there may be a lesson. Don’t lose sight of the economic and wealth-building progress that can be achieved even during seemingly challenging times.

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Dave Cooper, CFP®, CIM®
Senior Investment Advisor Portfolio Manager
[email protected]

Tyler Cockbain, BA, CFP®, CIM®
Senior Investment Advisor Portfolio Manager
[email protected]


Justin Nekechuk, B. Ed
Associate Investment Advisor
[email protected]

 Tower Wealth Advisory
212, 1524 91 St. SW, Edmonton, Alberta T6X 1M5
780.484.5777 ext. 1 or 891
Email: [email protected]

The information contained herein has been provided for information purposes only. Graphs, charts and other numbers are used for illustrative purposes only and do not reflect future values or future performance of any investment. The information has been provided by J. Hirasawa & Associates and is drawn from sources believed to be reliable.

The information does not provide financial, legal, tax or investment advice. Particular investment, tax, or trading strategies should be evaluated relative to each individual’s objectives and risk tolerance. This does not constitute a recommendation or solicitation to buy or sell securities of any kind. Market conditions may change which may impact the information contained in this document. Wellington-Altus Private Wealth Inc. (WAPW) and the authors do not guarantee the accuracy or completeness of the information contained herein, nor does WAPW, nor the authors, assume any liability for any loss that may result from the reliance by any person upon any such information or opinions. Before acting on any of the above, please contact me for individual financial advice based on your personal circumstances. WAPW is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada.