Good afternoon. In today’s letter we’re covering: 

Today’s reading time is 3 minutes.

Canada's inflation hit 2.4% year-over-year in December, slightly above what economists expected, but don't expect the Bank of Canada to lose sleep over it. The bump was mostly a math quirk—last year's temporary GST/HST tax break made year-ago prices look artificially low, inflating the comparison. Gas prices falling faster than last month helped offset that a bit. The real story's in the core measures, which stayed pretty calm with just marginal monthly gains. Strip out the noise and underlying inflation's still hanging around 2%, right where the BoC wants it. Analysts expect the central bank to keep its overnight rate parked where it is through all of 2026.

The federal government’s deal to allow 49,000 Chinese EVs into the Canadian market at a lower tariff rate may not be enough to drive down car prices, one expert cautions. The Globe & Mail’s car columnist argues that the quota's too small to justify Chinese brands like BYD building dealer networks here. Instead, you’ll likely see Chinese-made Teslas, Buicks and Volvos that can be sold at existing dealerships. And if BYD does show up, they'll probably push pricier models to maximize profits on limited quota space, like how Japanese brands moved upmarket when facing import caps in the 1980s. Others disagree, however, saying that the competition could pressure other automakers to drop prices, and more trade-ins could mean better deals on used EVs.

Markets are rattled after Trump threatened 10% tariffs on eight European countries—including Germany, France, and the U.K.—unless they back his plan to buy Greenland. European stocks and S&P 500 futures (American markets are closed today) fell over 1%, with luxury brands like LVMH and automakers like BMW getting hammered. Gold and silver both hit record highs, with gold topping $4,698 an ounce and silver surging past $94. The EU's threatening retaliatory tariffs on over $100 billion in U.S. goods as soon as February 7. Goldman Sachs estimates the levies could shave 0.1% to 0.2% off GDP in affected countries, though bigger risks loom—Deutsche Bank warns Europe might start dumping its massive $8 trillion holdings of U.S. stocks and bonds, which could send prices down further.

Quick check:

Why it matters: A 2% fee gap over 20 years can cost you six figures on a $500,000 portfolio. You don't need the absolute cheapest option, but you should know what you're paying and whether you're getting value for it. Most people have no idea.

If this is you: Pull up your December statement and look for the fee disclosure section. It's usually labeled "Report on Charges and Compensation" or similar. If your total cost is under 1.5% and you're getting planning advice, that may be reasonable (we prefer even cheaper options, but that’s for DIY ETFs and the like). If it's over 2% and you're just holding mutual funds, book a call with your advisor and ask what you're paying for. It's a fair question.