Bags Of Money On A Canola Field

The case for making cash flow projections

Financial Planning: A cash flow projection is a versatile financial risk management tool

Preparing a cash flow projection as part of your annual farm budget process could provide a signal that changes are needed for the upcoming year. While it’s true farmers have no control over the weather or commodity markets, we do have control over most costs. With the exception of unpredictable pesticide decisions, annual expenses may […] Read more

stock market display

Analysts say bond markets may be foretelling bad news

Guarding Wealth: Economic trouble ahead if government bond long yields fall below shorts

From the back rooms of bond research departments comes the disheartening news that the yield curve for U.S. Treasury bonds is flattening and could invert next year, causing a kink where rates rise for a while and then drop. Somewhere between one day and 30 years, which is the usual span of the curve, the […] Read more


Stock market chart on LCD screen. Selective focus.

Global junk

Guarding Wealth: Scorned in the past, it’s become glamorous in a market driven by index funds

The investment market at times resembles a circus in which the strangest acts sell the most tickets. In the latest bit of acrobatics, sovereign junk bonds issued by national governments are turning in their best performance in years. For example, European sovereign junk returned 100 per cent in the nine years since the mid-2008 beginning […] Read more

Guarding Wealth: Keeping your financial portfolio stable

Guarding Wealth: Keeping your financial portfolio stable

How much risk do you want in your portfolio, and will risk bring you higher returns?

Choosing stocks and bonds is in some ways like picking the petals off a daisy. The choice: will it be regular income or capital gains (hopefully)? Some investment assets pay regular income. In this category are conventional bonds that promise annual or semi-annual interest payments and dividend-paying stocks that make no firm promises but that […] Read more


Bubble in the finance world

Guarding Wealth: When will the stock market bubble pop?

Stock markets are soaring in spite of increasing risks. If this is a bubble, will it last?

When is a bubble a bubble? The Oxford English Dictionary defines a bubble as “a significant, usually rapid, increase in asset prices that is soon followed by a collapse in prices… typically arises from speculation or enthusiasm rather than intrinsic increases in value.” The question is vital right now, for one of the best guides […] Read more

Six habits of highly resilient farmers

Six habits of highly resilient farmers

In 2010 David Gray, a development officer with the Department of Agriculture and Food, Western Australia (DAFWA), did a small study of four farms that were consistently more profitable and better at dealing with climate change. He found six common characteristics within these resilient farms.


Magnifying glass on newspaper

Guarding Wealth: Canadian interest rates to rise

But don’t hold your breath — any big rate moves are at least 18 months ahead

To quote the most recent winner of the Nobel Prize for literature, Bob Dylan, “the times, they are a-changin’.” In capital markets, the U.S. Federal Reserve Board is likely to raise the interest rate it charges banks to borrow money overnight to maintain reserves — a key indicator for all other interest rates in the economy. This increase […] Read more

Farm Financial Planner: No heirs? That’s not a problem

A solution for retirement and a legacy for a Manitoba couple with no farm successor

In south central Manitoba, a couple we’ll call the Bretts have a 640-acre mixed farming operation. Jack and his wife, Martha, each 61, have a son, 30, with an off-farm job. Their son is not interested in taking over the family business. It’s inevitable that Jack and Martha will want to leave their farm. It […] Read more



Guarding Wealth: Are bonds the best bet for you?

Guarding Wealth: Are bonds the best bet for you?

Four secrets to buying bonds for your portfolio

Stocks flourish on good company news, a bit of inflation to push up prices, moderate growth in corporate earnings, and the optimism of investors looking forward to rising incomes and climbing profits. Bonds, on the other hand, are for pessimists. As economic growth slows, the demand for loans declines. Inflation subsides. In this atmosphere, bonds […] Read more