Canadians spending less on gifts (and donations) for the 2023 holiday season + MORE Nov 10th

The world is in crisis—again. At the time of writing, Israel is planning its ground invasion of Gaza after an attack by Hamas, and Ukraine and Russia remain at war almost two years after their conflict began in February 2022. Sadly, these are not the only wars happening. Regions around the world are in conflict. Afghanistan, Central African Republic, Ethiopia, Somalia, Libya and Syria, among others, are dealing with civil war and/or surges in violence. In this article, I will share my best insights to help Canadian investors navigate these uncertain times.

Emotions in investing

The humanitarian crises taking lives and garnering headlines are heart-wrenching—particularly for Canadians who have family and friends in the affected regions. More broadly, no one knows for sure how these crises will affect global economies, access to resources and financial markets. It’s understandable that investors are scared and making investment decisions based on their fear. Some people are selling their equities and leaving the markets…

The holiday season is coming, and it’s not looking very merry, money-wise. Canadians are facing a bundle of financial pressures, including inflation, high interest rates, mounting personal debt and lingering fears of a recession. No doubt, life in Canada is getting more expensive. And as retailers start pumping out gift guides and charities ramp up their holiday appeals, many of us are eyeing our bank accounts and thinking, “Not this year.”

Canadians are already planning to spend less, according to Deloitte Canada’s 2023 Holiday Retail Outlook. This is an annual forecast for retail businesses—but this year, there’s little for them to feel jolly about. According to a survey of 1,000 Canadians, we plan to spend an average of $1,347 over the 2023 holiday season. That’s down 11% from 2022’s forecast of $1,520 and nearly 27% from 2021’s forecast of $1,841. What are we cutting back on this year? Charitable donations (-40%), gifts (-18%) and gift cards (-14%).

Thinking about making a donation this holiday season? View our guide to the top impact charities…

Kyle Prevost, creator of 4 Steps to a Worry-Free Retirement, Canada’s DIY retirement planning course, shares financial headlines and offers context for Canadian investors.

Disney (and most U.S. companies) surprise to the upside

With 88% of companies in the S&P 500 having now reported results, nearly 9 in 10 have surpassed earnings estimates. Consumers continue to feel worse about the economy, and companies just continue to make more money. It’s quite an odd time to try to make sense of the markets.

U.S. earnings highlights
This is what two American companies reported this week. All figures below are in U.S. dollars.

Uber (UBER/NASDAQ): Earnings per share of $0.10 (versus $0.12 predicted), and revenues of $9.29 billion (versus $9.52 billion predicted). Disney (DIS/NYSE): Earnings per share of $0.82 (versus $0.70 predicted), and revenues of $21.24 billion (versus $21.33 billion predicted).

Disney’s outperformance was chiefly due to ESPN+ subscriptions and continued revenue increases at theme parks…