BJK Financial Group Blog

Reflecting on 2024: A Year of Challenges and Opportunities

As we step into 2025, it's a good time to pause and reflect on the major events of 2024 and how they shaped the world of investing. Whether you’re a seasoned investor or someone new to the market, understanding these developments can help us make informed decisions moving forward.

2024 was a year filled with both challenges and opportunities, from political shifts to significant economic events. In this blog, I’ll recap the key moments of the year and share analysts' projections for 2025, providing you with a clear and relatable perspective on what lies ahead.

 

Major Events in 2024

 

1. Global Economic Conditions

 

2024 started on a cautious note as central banks worldwide continued their efforts to tame inflation. While the U.S. Federal Reserve and the Bank of Canada paused rate hikes early in the year, the effects of previous increases were still rippling through economies.

 

In the U.S., GDP growth slowed to 2.1%, reflecting tighter monetary policies and weaker consumer spending. Similarly, Canada’s economy faced challenges, with growth hovering around 1.5%. The energy sector, however, provided some relief, as oil prices stabilized at an average of $85 per barrel after volatility in 2023.

 

In Europe, the energy crisis caused by the ongoing conflict in Ukraine eased slightly as countries diversified their energy sources. However, the region’s growth remained sluggish, at 0.9%, with Germany narrowly avoiding a recession (source).

 

2. Geopolitical Shifts

 

The war in Ukraine entered its third year, continuing to impact global energy markets and trade routes. Despite diplomatic efforts, a resolution remained elusive, keeping commodity markets on edge.

 

In the Middle East, tensions between Israel and its neighboring countries escalated briefly in mid-2024, sending oil prices higher for a short period. Meanwhile, China’s slower-than-expected recovery from COVID-related lockdowns led to reduced demand for global commodities, adding to the uncertainty in the markets.

 

3. Market Performance

 

The stock markets had a mixed year. In the U.S., the S&P 500 ended 2024 up by 9%, driven by a late-year rally in technology and healthcare stocks. Canada’s TSX Composite Index performed modestly, gaining 6%, supported by strong performances in energy and materials sectors.

 

Cryptocurrencies made headlines again, with Bitcoin climbing 40% as institutional investors showed renewed interest. However, volatility remained a key characteristic of the crypto market, making it a challenging space for retail investors.

 

4. Political Landscape

 

In the U.S., the 2024 presidential election dominated headlines. President-Elect Donald Trump secured a narrow victory, which brought some stability to markets, reacting favorably to his potential tax cuts.  Debates over debt ceilings, fiscal policies and immigration continued to create uncertainty. (source).

 

Canada held no federal election in 2024, but provincial politics, particularly in Alberta and Ontario, shaped local economies. Alberta saw a surge in investment in renewable energy projects, while Ontario’s housing affordability crisis persisted, sparking policy debates (source).

 

5. Natural Disasters and Climate Initiatives

 

Severe weather events, including wildfires in Canada’s west and hurricanes in the U.S., reminded the world of the urgent need for climate action. These events also impacted insurance and utility companies, with analysts predicting a shift in investment strategies toward renewable energy and climate-resilient infrastructure (source).

 

Projections for 2025

 

1. Economic Outlook

 

Economists predict that 2025 will be a year of moderate recovery as inflationary pressures ease. In Canada, GDP growth is expected to rebound to 2.3%, while the U.S. is projected to grow at 2.6%. The global economy, driven by improving conditions in emerging markets, could see growth of 3.5% (source).

 

Central banks are likely to maintain their current interest rate levels, with potential rate cuts in the latter half of the year if inflation continues to decline. This stable monetary environment should support businesses and consumer spending.

 

2. Stock Market Predictions

 

Analysts are cautiously optimistic about stock markets in 2025. Technology, healthcare, and renewable energy sectors are expected to lead gains. Companies investing in artificial intelligence (AI) and clean energy solutions are likely to be at the forefront of growth (source).

 

In Canada, the TSX Composite Index is projected to grow by 7-9%, driven by continued strength in natural resources and an expected rebound in the financial sector. Meanwhile, the U.S. S&P 500 could see gains of 8-10%, assuming no major geopolitical shocks.

 

3. Key Risks to Watch

 

While the outlook is positive, several risks remain:

 

  • Geopolitical Tensions: Ongoing conflicts in Ukraine and the Middle East could disrupt energy markets and trade (source).
  • Climate Change: Extreme weather events may continue to strain economies and industries (source).
  • China’s Economy: A slower recovery in China could affect global demand for goods and commodities (source).
  • Debt Levels: High public and private debt levels in many countries remain a potential drag on growth (source).

4. Investment Opportunities

 

For investors, 2025 offers several areas of opportunity:

 

  • Green Energy: Investments in renewable energy and sustainability-focused companies are expected to grow (source).
  • AI and Technology: Companies leveraging AI and automation to improve efficiency could see significant gains (source).
  • Dividend Stocks: With interest rates stabilizing, dividend-paying stocks may become attractive for income-focused investors.
  • Emerging Markets: Economies in Asia, Latin America, and Africa could deliver strong returns as they recover from pandemic-related setbacks (source).

5. Tips for Investors

 

As always, it’s important to stay diversified. Don’t put all your eggs in one basket—spread your investments across sectors and geographies. Consider your risk tolerance and time horizon before making any major investment decisions. If you’re unsure where to start, working with a financial advisor can help you build a portfolio tailored to your goals.

 

Closing Thoughts

 

2024 was a year that tested the resilience of economies and investors alike. From inflation and geopolitical tensions to promising advances in technology and sustainability, it reminded us of the importance of staying informed and adaptable.

 

Looking ahead, 2025 offers a mix of opportunities and risks. By staying focused on long-term goals and being mindful of market dynamics, we can navigate the path ahead with confidence.

 

If you have questions about your investment strategy or want to explore new opportunities, feel free to reach out. Together, we can make 2025 a successful year for your financial journey.

 

Sources:

Brian Kettles at 9:50 AM
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Start 2025 Right: Maximize Your RRSP and TFSA Contributions

As we ring in 2025, it’s the perfect time to evaluate your financial goals and make the most of your registered accounts. Here’s what you need to know to stay on track:

 

RRSP Contributions

 

The 2025 contribution limit for a Registered Retirement Savings Plan (RRSP) is $32,490 or 18% of your 2024 earned income, whichever is lower. This is an increase from the 2024 limit of $31,560.

 

Mark your calendar! The deadline to contribute for the 2024 tax year is Monday, March 3, 2025.

 

Why contribute? RRSPs offer immediate tax benefits by reducing your taxable income while helping you build a secure retirement.

 

TFSA Contributions

For 2025, the annual Tax-Free Savings Account (TFSA) contribution limit is $7,000. If you’ve never contributed before, the cumulative room by the end of 2025 will total $102,000.

 

TFSAs are a versatile option for tax-free growth, whether you're saving for short-term goals or long-term investments.

 

Take Action Today

 

If you’re unsure about your available contribution room or how to optimize these accounts, let’s connect! Together, we can ensure your RRSP and TFSA contributions align with your financial goals for 2025 and beyond.

 

Let’s make this year a success—financially and otherwise.

 

Contact me today to start the conversation!

Brian Kettles at 10:18 AM
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The Canada Post Strike: What’s At Stake For Businesses, The Economy and Workers.

The Canada Post strike, unfolding during a planned but inconvenient time—the holiday season,  is more than a labour issue, it’s a pivotal moment that could affect how businesses approach shipping logistics in the future, consumers and the Canadian economy at large. As strikes continue to disrupt mail and parcel deliveries, businesses are adapting by switching to other carriers, this is the main cause of economic consequences. 

 

Situation Break Down: 

 

For those unfamiliar with the cause of the strike, Canada Post is facing labour action from the Canadian Union of Postal Workers (CUPW), which is advocating for better wages and working conditions. This ongoing strike, now in its fourth week (at the time of writing), has disrupted businesses in their most crucial season, forcing many to rely on more expensive carriers like FedEx, Purolator or UPS.  As businesses invest in these alternatives to keep their operations going, they risk permanently shifting away from Canada Post to avoid future inconveniences and uncertainty to support their customer satisfaction rate. This is especially true for smaller businesses that don’t have the capacity to absorb the costs brought by the strike. Moreover, the strike timing couldn’t be worse. As online shopping grows in popularity holiday shopping businesses and consumers are more adamant to navigate these delays, using the alternative shipping solutions. 

 

Why this happened:

 

This Postal Strike isn’t the first one for Canada Post, back in 2018 this also happened because of similar unresolved issues regarding wages, benefits and working conditions. Now the main dilemma is the wage increases for the workers to keep up with rising inflation also including but not limited to : better group benefits such as more paid medical leave, improved protections against technological changes, paid meal/ rest periods and higher short-term disability payments. Global News tells us that “The Canadian Union of Postal Workers (CUPW) described the decision to strike as a “difficult” one, made after more than a year of negotiations with the employer.” On the other hand, Canada Post is navigating significant financial challenges, having incurred losses of $3 billion since 2018, with $490 million reported in the first half of 2024 alone. The corporation has proposed wage increases of 11.5% over four years, additional paid leave, and a shift to a seven-day delivery model as part of its strategy to grow its parcel business and address operational inefficiencies. However, CUPW argues that these proposals do not adequately address workers’ concerns or the risks of potential layoffs. 

 

Canada Post’s Role in the Economy: 

 

The Canada Post strike has cost the small- and medium-sized business sector at least $765 million or $76.6 million each business day. At this rate, if the strike is not immediately resolved, it will have cost the sector over $1 billion as of December the 4th, warns the Canadian Federation of Independent Business (CFIB). With companies switching to other corporations this would also up the costs for consumers. This postal service supports major economic functions like delivering government payments, business invoices alongside online retail shipments. In addition to financial losses, rural and remote communities often lack alternative shipping options making Canada Post’s availability essential. 

 

What’s Next? 

 

As seen previously, a solution for this issue in 2018 has been to get back the to work legislation. This is when the government passes a law to stop a strike and forces workers to return to their jobs while negotiations continue. It’s usually done to avoid big disruptions, like in mail delivery or public services, but some people think it’s unfair since it weakens the union’s power. This option has always been only used as a last resort and as of right now this has not been one of the main considered solutions. Canada Post has also threatened lockouts to push government intervention which could lead to binding arbitration, this is where unlike previous negotiation the decisions made through negotiation are legally enforceable and can’t be appealed. Enforced solutions were used during the 2011 strike and during the one in 2018 by Prime Minister Justin Trudeau. This time however the Liberal minority government might not be able to impose the back to work legislation as they did with the railway shut down this past august. As a minority they would need the support of at least another party to pass any legislation. The New Democratic Party, specifically Matthew Green (NDP’s labour critic) said: “There is not a scenario where we’ll be supporting the back-to-work- legislation.” Finally, the progress of negotiations can change on a day-to-day basis and these decisions will determine the final consequences for Canada Post, its workers, businesses and consumers. 

Brian Kettles at 9:17 AM
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How To Manage Credit Card Debt During the Holiday Season.

As the holiday season approaches people around the world prepare to celebrate in all special ways. Whether it’s lighting a menorah for Hanukkah, decorating a Christmas tree, gathering for Kwanzaa or simply enjoying time off with loved ones it’s all a time of togetherness we need to cherish. However, with all the excitement this season many will tend to overspend getting carried away in the holiday fun. While treating yourself and loved ones is great, overspending as a result of this can lead to financial headaches including credit card debt. The good news? Paying off credit card debt and being more mindful with holiday spendings can set you up for long term financial health. In this blog we’ll discuss the benefits of paying off that debt and a few tips and tricks to help you spend less. 

 

The Benefits of Paying Off Credit Card Debt

 

  1. Save On Interest: The less debt you carry, the less you’ll pay in interest
  2. Boost Your Credit Score: Lower balances and on time payments as well as your spending history are some of the key factors used to calculate your credit score. Having a good credit score will help you get approved for better interest rates and other loans such as mortgages. 
  3. Investing In Your Future: The money you save from cutting down debt first can later be redirected towards something in the future such as finally being able to save for the vacation you've been wanting to take.

 

 How To Pay Off Credit Card Debt 

 

Now that we’ve presented the benefits of paying off that credit card debt, here are a few strategies on how we can do so. Before coming up with a plan to get rid of accumulated debt or figuring out how to avoid it, it’s important to understand how it came about. First you can start by going over credit card statements and find spending patterns and see if you can cut down on these expenses. Are there areas where you could cut back? Maybe cancel that rarely used gym membership or trade dining out for cooking at home. 

 

Choosing a Debt Repayment Method: Here are two ways to plan out your debt payments

  • Avalanche Method: Focus on paying off the debt with the highest interest rate first while making minimum payments on other debts. Once that’s paid, tackle the next highest interest debt. This approach saves money on interest.
  • Snowball Method: Start with the smallest debt first. Once it’s paid, roll the money you were using into paying off the next smallest debt. This strategy builds momentum and motivation.

Pay More Than the Minimum

 

Making only the minimum payment keeps you in debt longer and costs more in interest. Even small extra payments can make a big difference over time.

 

Cut Back on Spending

 

Create a budget to understand your income and expenses. By reducing unnecessary spending, you can free up more money to pay down debt. Try:

  • Setting a Goal: Know how much debt you have and set a timeline to pay it off. A clear goal can keep you motivated.
  • Tracking Spendings: Writing down how much you spend or even using an app or a simple spreadsheet could help keep you accountable and show you what your areas in need of improvement are.  
  • Involving Others: By sharing your goals with either family members or friends they might also be interested in cutting back their spendings or just help you stay accountable and could be interested in trying more budget friendly outings. 

Debt consolidation

 If you're juggling multiple credit card balances at a time, consolidating them into one account could simplify things. There are different options like balance transfer cards or debt consolidation loans that often have lower interest rates, helping you save money in the long run. For example: if you transfer $5000 to a card with 0% interest for 18 months, paying $278 a month could eliminate debt before the promotion ends. It’s equally important to check whether the card has transfer fees and to check all other card terms and conditions before you apply.

 

Tips for Avoiding Debt in the Future

 

Once you’ve made progress on paying down debt, it’s important to maintain healthy financial habits. Here’s how:

  • Plan for Seasonal Expenses: Set aside money throughout the year for holidays, birthdays, and other special occasions. This reduces the temptation to rely on credit cards.
  • Build an Emergency Fund: Unexpected expenses like car/house repairs or medical bills can push you back into debt if you’re not prepared. Aim to save at least three to six months of living expenses as a cushion.
  • Re-evaluate Wants vs. Needs: Before making a purchase, ask yourself if it’s something you truly need or if it can wait. 

Final Thoughts…

 

The holidays should be a time of celebration, not stress. By focusing on paying off that credit card debt and practicing smarter financial habits, you can enjoy the season guilt-free and set yourself up for success in the new year. It’s important to remember that small, consistent changes can lead to big results and can give you the freedom to focus on what really matters.

Brian Kettles at 11:20 AM
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The Impacts on The Canadian Economy From The 2024 U.S Election

With Donald Trump back in office following this year’s U.S election, many Canadians are growing increasingly concerned about the effects his plans and policies could have on our country, specifically economically. As the United States is Canada’s largest trading partner and a key player in all global economics, Trump’s proposed tariffs, energy production, and immigration are bound to have significant implications for Canada. 

 

Tariffs and Trade Relations 

 

To start, one of the major potential causes for economic disturbances for Canadians stems from the  tariffs  promised to be imposed by Trump and the Republican Party. According to Marc Ercolao, an economist with TD Bank, these tariffs could lead to higher costs for Canadian imports and could bring temporary inflation spikes. For many Canadians inflation is already a major concern and “Tariffs create a negative income hit to Canadians as they pay more for imports, which would feed into a temporary and modest re-acceleration of inflation to the 2.5–3.0% y/y range before roughly reverting back to the Bank of Canada’s (BoC) 2% target by 2026” TD  The sectors most vulnerable to U.S. tariffs include the auto industry, energy, chemicals, forestry, and machinery. For example, our automotive supply chain is deeply integrated with the U.S., with approximately 20% of immediate goods coming from American suppliers. In contrast, industries like agriculture and mineral exports may be less affected, as only about half of their goods are destined for the U.S. market. Canadian businesses are expected to adapt by diversifying supply chains or absorbing some of the additional costs. Now these adjustments might still hurt corporate margins and household incomes. In the worst-case scenario, these tariffs could push Canada’s GDP down by 1.7% by 2028, with even a risk of a recession if Trump brings harsher policies.

 

Adding to the tension is Canada’s Digital Services Tax (DST), which imposes a 3% tax on revenue earned by foreign tech companies. The U.S. has pushed back, arguing that this tax violates trade agreements, and there are concerns that it could lead to further strain on negotiations between the two countries.

 

Energy and Resource Sectors

 

Moving on to Trump’s commitment to expanding U.S. oil and gas production, disregarding environmental impacts —echoed in his “Drill, Baby, Drill” slogan—Desjardins team including Jimmy Jean, Vice-President, Chief Economist and Strategist mentioned the mixed consequences for Canada. On one hand, an increase in U.S. energy output could lead to lower global energy prices, which might hurt Canadian oil producers. Similarly, reduced energy prices often translate to lower corporate profits and wages in Canada’s energy sector, further taking a toll on economic activity. However, experts believe the integrated nature of the North American energy market may provide some relief as they could be negotiated. In particular, Canada’s role in supplying energy and related goods to the U.S. might shield it from the harshest impacts.

 

Immigration Policies

 

On to immigration, which is another important area for the Republican Party, where Trump’s policies could indirectly affect Canada. His administration has vowed to significantly restrict immigration and deport millions of undocumented residents in the U.S. While some Canadians worry this could drive more immigrants to move up north to Canada, experts suggest that Canada’s recent tightening of visa requirements for travelers could mitigate a potential surge in immigration. Nonetheless, The American Immigration Council stated: “ It would cost $315 billion to arrest, detain, and deport all 13.3 million living in the United States illegally or under a revocable temporary status”, which could indirectly impact Canada through disruptions to cross-border trade and labor markets. Businesses that rely heavily on immigrant labor will also be forced to downsize and there may also be a reduced demand for Canadian goods and services.

 

Finally, the adaptability and strategies from Canadian businesses and government policies will also determine how everything will play out and affect Canada. It's also important to note that these predictions are based on all current information and plans from Trump as well as the current market performance meaning it is subject to change. In the meantime, Canadians can prepare by staying informed and proactive with their personal business decisions.  

 

Brian Kettles at 9:58 AM
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Brian Kettles
Name: Brian Kettles
Posts: 47
Last Post: January 15, 2025

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The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This Blog was written, designed, and produced by Todd Race Copywriting for the benefit of Brian Kettles who is a investment fund advisor at BJK Financial Group a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this article comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities.

 

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