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We explore the potential seismic shift in US-Canada relations following Mark Carney's election as Prime Minister of Canada and the implications for North American economic integration.

• Moving back to centrist economic policies in both the US and Canada
• Canada's competitive advantage in natural resources was ignored under Trudeau
• The historical importance of the proportionality clause in US-Canada trade agreements
• Why Calgary might become an economic powerhouse like Houston or Dallas
• The weaponization of the US dollar against Russia has damaged trust in treasuries
• Gold and Bitcoin emerging as potential anchors in a new monetary system
• Trump's tariff tactics may be positioning for a larger deal on natural resources
• Northern Ontario's rare earth deposits represent critical supply chain opportunity
• Potential deregulation of US banks returning to pre-Dodd-Frank lending conditions
• Investment opportunities in tech, gold, Bitcoin, pipelines, and corporate bonds

The midterm elections will be crucial for determining if Trump can translate executive orders into durable legislation that reshapes the North American economic relationship.

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America stands at a fiscal precipice, with national debt approaching 100% of GDP and projected to reach 130% by 2035 if current policies continue. This podcast features an illuminating conversation with fixed income expert Steve Gattuso, who brings his professional perspective as a portfolio manager at a $6 billion investment firm and his academic insights as a 12-year finance professor.

The discussion reveals how America's fiscal trajectory has deteriorated dramatically since 2012, when debt-to-GDP stood at a manageable 60%. Today, with annual deficits approaching $1.9 trillion and interest payments consuming 14% of federal spending, we're caught in what Gattuso describes as a "vicious cycle" of ever-increasing debt servicing costs. The conversation explores how COVID spending normalized massive deficits, with what once seemed like "ridiculous" $850 billion fiscal packages now appearing as "chump change."

Perhaps most concerning is the political leadership's apparent inability to address these challenges coherently. From tariff policies that were "rolled out badly" to contradictory messaging about Federal Reserve independence, there's a troubling lack of fiscal strategy. The hosts examine how the market currently focuses on day-to-day headlines while ignoring the looming debt crisis – at least until it becomes impossible to ignore.

For investors, the implications are profound. Traditional safe havens like Treasury bonds may no longer provide the security they once did. The podcast offers practical diversification strategies focusing on real assets like gold and real estate, along with potential currency diversification into Swiss francs and Japanese yen. As one host poignantly notes, "This should be a national security concern" – framing fiscal responsibility not just as an economic issue but as essential to America's long-term stability and global leadership.

We help you to understand how America's debt crisis might affect your investments and what steps you can take to protect your financial future in these increasingly uncertain times.

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Alternative investments offer potential diversification but come with significant trade-offs in liquidity, transparency, and fees that many investors overlook. We explore why the famous "Yale approach" to investing that worked brilliantly in the 1980s and 1990s may not be appropriate for most investors today.

• Alternative investments lack daily market pricing, with most only valued quarterly
• The "messy middle" includes less liquid investments that lack transparency of public markets
• Private equity and venture capital investments typically involve significant lockup periods
• When financial crises hit, illiquid alternatives can't be accessed when you need cash most
• High fees (often "2 and 20") create significant performance hurdles for alternative managers
• Consider investing in public shares of PE firms like KKR or Apollo rather than direct private investments
• Warren Buffett's $360B cash position and Jamie Dimon selling JPM stock are market signals worth noting
• Most investors should limit alternative allocations to 10-20% of their portfolio
• True diversification requires maintaining adequate liquidity for short and medium-term needs

Join us next week as we welcome Stephen Gattuso to discuss the national debt, interest payments, and how these fiscal challenges will impact our financial futures.

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Steve and Clem examine how bonds have shifted from reliable safe havens to potentially risky investments in today's economic landscape, challenging conventional wisdom about treasuries as risk-free assets.

• Bonds traditionally provided safety and income, but inflation and economic uncertainty have changed this dynamic
• Bond vigilantes reacting to tariff announcements revealed hidden vulnerabilities in bond portfolios
• Long-duration treasuries (20-30 years) make little sense for individual investors despite their institutional utility
• Corporate bonds from companies with strong balance sheets may offer better safety than government treasuries
• Municipal bonds provide tax advantages and allow investors to leverage local knowledge
• Current inflation concerns suggest shorter bond durations (2-3 years vs. market average of 6 years)
• "All that is riskless is not US Treasuries" – questioning the fundamental assumption of risk-free government debt
• Rising rates can significantly impact bond values through duration risk (5-year duration means ~5% loss per 1% rate increase)

Share and like what you see, and if you have questions or ideas, please reach out and contact us.

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Gold serves as a portfolio stabilizer during volatile markets while offering upside potential when traditional assets falter. We explore how this precious metal fits into a diversified investment strategy during uncertain times.

• Gold ETFs provide liquid exposure without needing physical storage
• Target allocation of 5-15% depending on market conditions and risk tolerance
• Gold demonstrates negative correlation to stocks during market downturns
• Multiple demand sources create price support: central banks, industrial use, cultural significance
• China's pursuit of gold backing for currency contributes to consistent buying pressure
• Writing covered calls against gold positions can offset ETF expenses
• Historical context includes Roosevelt's 1930s gold seizure, though unlikely in modern context
• Gold currently represents 7-10% of potential backing for US dollar
• During extreme volatility, allocation could increase to 15-20% for protection

Share this episode with fellow investors seeking to understand how gold might strengthen their portfolios during uncertain times.

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When markets plummet in response to unexpected policy shifts like Trump's tariff announcements, distinguishing between panic reactions and thoughtful investment strategy becomes crucial. Steve Davenport and Clem Miller cut through the market noise to deliver a practical framework for navigating financial turbulence.

The duo examines three potential market scenarios ranging from a further 20% drop with sluggish recovery to a milder 5% decline followed by stabilization. Unlike systemic crises of the past, today's market challenge stems from policy decisions that could theoretically be modified more easily—though international responses, particularly from China, add significant complication.

What makes this episode particularly valuable is their focus on financial resilience rather than market timing. Before worrying about portfolio tweaks, they emphasize foundations: Do you have adequate emergency savings? Have you minimized debt? Can you sleep well with your current risk exposure? This perspective shift from short-term market movements to long-term financial health provides immediate clarity during uncertain times.

For those contemplating action, they suggest incremental adjustments over dramatic moves—considering reducing exposure to high-beta stocks, companies with significant short interest, and those with elevated forward PEG ratios. Their nuanced view on mid-cap stocks (conducting approximately 80% of business domestically) offers an intriguing alternative to both large-cap tech and small-caps during tariff uncertainty.

Ready to strengthen your investment approach during market volatility? This episode delivers the balanced perspective you need to make confident decisions when headlines scream panic. Share with friends who could benefit from a dose of calm, rational investment thinking during turbulent times.

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The extension of Trump-era tax cuts presents critical planning decisions as exemption amounts could drop from $14 million to $7 million per person without congressional action.

• Estate tax exemption likely to receive a four-year extension rather than permanent status
• Trump administration characterized by chaos and short-term thinking rather than coherent strategy
• Stephen Miller identified as Trump's most influential advisor and policy gatekeeper
• Elon Musk serves as a "heat sink" absorbing criticism while implementing controversial policies
• Government agency staff reductions create long-term damage to institutional knowledge
• International allies may pursue independent security measures if US support seems unreliable
• American civic education crisis leaves citizens unable to understand how government functions
• Energy sector potentially most resilient to upcoming political and economic turbulence
• Immigration restrictions risk undermining America's technological leadership
• Political divisiveness threatens productive dialogue on critical national issues

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We examine the debt ceiling crisis and its implications for investors, revealing how this political standoff reflects deeper problems in America's fiscal health that could impact global financial markets and your portfolio.

• Debt ceiling is a uniquely American concept (shared only with Denmark) limiting federal government borrowing
• Official national debt at $40 trillion excludes $25-30 trillion in unfunded Medicare, Medicaid, and Social Security liabilities
• Rising interest rates have increased annual debt servicing costs to nearly $1 trillion
• Foreign ownership of US debt includes Japan (12.7%), China (8.9%), UK, Luxembourg, and Cayman Islands
• Investors should consider maintaining cash reserves and diversifying beyond Treasuries
• Economic growth through improved immigration policies could help address the debt-to-GDP ratio
• Current political focus on tariffs is "puffery" distracting from real solutions to debt problems
• Per capita national debt now exceeds $106,000 for every American

Be careful out there as an investor - have a plan B and stay balanced, flexible and ready to adapt as economic conditions change.

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