Features
Remis group hears thoughtful analysis of war in Ukraine
By BERNIE BELLAN It’s always interesting to hear perspectives on a story that occupies much of our attention from an individual who has first hand knowledge of that particular story.
Such was the case on August 4 during one of the regular luncheon get-togethers of the Remis lecture group at the Gwen Secter Centre when the guest speaker was Olexandr Shevchenko, a historian and interpreter who comes from Ukraine himself.
Shevchenko is also a part-time lecturer at the University of Winnipeg, where he has taught courses on Russian history and European Power Politics.
While you’d have to be oblivious to world events not to be aware of what’s been happening in Ukraine since the Russian invasion, which began on February 24, listening to Shevchenko putting things into a very broad perspective certainly helped those who were at the luncheon gain a much deeper understanding of how events were set on a collision course long ago – and which ultimately led to Russia’s totally unjustified invasion of a neighbor country.
Shevchenko’s talk was titled “Can democracy defend itself?” By looking back at certain key events that are often overlooked when one is fixated on the day to day events of the war such as what atrocities have the Russians committed lately? he was able to help audience members obtain a better understanding how Vladimir Putin could come to think that he could invade Ukraine with few consequences.
A pivotal event – and one that is hardly ever mentioned in coverage of the Russian invasion, according to Shevchenko, was the war in Georgia in 2008, when Russian troops entered into the former Soviet republic of Georgia on the side of the self-proclaimed republics of South Ossetia and Abkhazia. Russia has occupied parts of Georgia ever since.
At the time though, much of the world’s attention had turned to the severe economic recession prompted by the collapse of the sub-prime mortgage market in the United States and the ensuing deep dives that stock markets took around the world, leading to a prolonged economic crisis that lasted well into 2009.
It was also the year of the election of Barack Obama, Shevchenko noted. One of the first things Obama did when he was elected, Shevchenko observed, was call for a “reset” of relations with Russia. Shevchenko, I don’t think you’d be surprised to learn, was rather dismissive of President Obama.
Russia had already been laying the groundwork for an effort to restore its past dominance of Eastern Europe, but when its invasion of Georgia barely caused a ripple among the international community, the table was set for further aggressive behaviour, Shevchenko explained.
“Russia does not consider itself bound by the dissolution” of the Soviet Union in 1991,” he said. Thus, when it invaded the independent republic of Georgia in 2008, the lesson garnered from that, according to Shevchenko, was “anything goes.”
The next domino to fall in the cascading series of dominos that led up to this year’s invasion of Ukraine occurred in 2014, when a pro-Soviet president in Ukraine, Viktor Yanukovych, resigned as a result of a series of protests by Ukrainians who were in favor of closer ties with the European Union. In February 2014 Russian troops occupied Crimea. Shortly thereafter pro-Russian separatist forces began fighting Ukrainian forces in the eastern Ukrainian provinces of Donetsk and Lukansk, aided by Russian troops.
Rather than take aggressive action though, Shevchenko said that had the Russians done nothing, “Ukrainians would have squabbled among themselves,” thus leading to disunity. Instead the occupation of Crimea and the arming of separatists in the eastern provinces hardened Ukrainian nationalism.
In 2019 Vlodomyr Zelensky was elected president of Ukraine when he headed a party known as the “Servant of the People Party.” In Shevchenko’s opinion, the party was made up of “extreme dreamers.”
“In some respects, Ukrainians electing a former comedian might have sent the wrong message to the Russians,” Shevchenko observed.
While Zelensky was hardly taken seriously by other world leaders, viz. Donald Trump’s attempt to manipulate him into saying that Hunter Biden had been engaged in corrupt business activities in Ukraine, Ukrainian themselves were hardly united in opposing Russian attempts to influence the course of Ukrainian history at that point.
Shevchenko told this joke to illustrate his point:
“Question: What is one Ukrainian?
“Answer: “A fighter.
“Question: What are two Ukrainians?
“Answer: A fighting unit.
“Question: What are three Ukrainians?
“Answer: A fighting unit with one traitor in it.”
The Russian invasion of Ukraine on February 24 was modeled after the Soviet invasion of Czechoslovakia in 1968, Shevchenko observed. The notion was that it would be fairly easy to topple the Ukrainian government and replace pro-democracy officials with Russian acolytes.
Unfortunately for Putin, things didn’t turn out the way he envisioned, but the consequences of the Russian invasion are likely to be felt around the world for years to come, Shevchenko predicted.
“We’re quite likely to see a bunch of regional wars around the world,” as the foundations of the world order that were established after World War II come undone – and stronger states feel empowered to attack weaker ones, he suggested.
Returning to the title of his talk, Shevchenko asked: “If democracy is defeated in Ukraine, what message does it say to the rest of the world?”
The answer, he said, is “it’s best to seek accommodation with your neighbours.”
As far as world organizations are concerned, Shevchenko said, “the UN is a joke. One of its primary purposes is the prevention of aggressive wars.” It wasn’t very effective in stopping Russia’s invasion, was it?
Further, Shevchenko asked: “Can a democracy defend itself?”
The answer, he suggested, was that “if it starts acting on real problems” and concerns itself “with the security and well being of its citizens,” then it can defend itself. (As an aside though, I have to admit that Shevchenko’s example of a democracy digressing from concerning itself with real problems was the debate over whether Portage and Main should be open to pedestrians. I wonder whether he might have been able to find a better example.)
Continuing in the vein of opportunities that were missed earlier to send a strong message to Russia that aggression toward its neighbours would not be tolerated, Shevchenko observed that another missed opportunity came when Turkey applied to join the European Union (a process that has been ongoing for years).
“Acceptance of Turkey into the European Union could have sent a message to the Muslim world,” Shevchenko suggested, that a state can be both democratic and Muslim.
Answering questions from attendees at the luncheon, Shevchenko was asked how long he thought the current war will go on?
There may be a “window of opportunity” this fall, he answered. Certainly, if it drags on there will be another opportunity when the US holds mid-term elections in November, he added (without quite explaining why).
But what if Russia emerges victorious – or at least claims to have achieved victory? What then? Shevchenko was asked.
“Could we have a puppet Ukraine?” “Possibly,” was the answer. But, would that lead to a more “docile” Russia? he wondered.
“I seriously doubt it,” Shevchenko said, answering his own question. “Who’s next? Finland? Poland?”
There are three possible outcomes to the fighting, Shevchenko explained:
“One shot in the Kremlin could end it all.
“Stalemate.
“The defeat of Ukraine”
(Shevchenko did not describe a scenario in which Ukraine beats back the Russians.)
Finally, Shevchenko offered this novel observation about which country’s behaviour might affect the long-term outcome of the war in Ukraine the most: the United Kingdom.
“What worried me the most from the beginning were the actions of the U.K. government,” Shevchenko said (without explaining why he was focusing on the U.K. rather than say Germany, which seems to be far more vulnerable to Russian threats than other European countries).
“What will happen in the upcoming winter” (when gas supplies could very well run short throughout Europe)? Shevchenko asked.
“The population may say ‘Wrap it up. We can’t have it any more.’ “
Really though, that’s what Putin is counting on, isn’t he – that European unity will evaporate and support for Ukraine will diminish to the point where he will achieve at least some of his original goal of disassembling the Ukrainian state.
So much to ponder. Olexandr Shevchenko certainly gave his audience something to think about – at a time when discussion of the war in Ukraine doesn’t usually occupy typical lunchtime conversations, does it?
Features
Exchange Rate Factors: What Global Events Mean for Savvy Investors
When Russia invaded Ukraine in 2022, it created ripples in all financial markets, including currency markets. The Euro weakened while the dollar surged and emerging market currencies wobbled. Global factors can quickly affect financial markets and shake established trends. Apart from such rare events, currencies tend to change their price because of interest rates, inflation, and overall investor confidence. For investors managing money abroad, understanding these movements is critical to avoid losses and mitigate risks.
Below, we will break down how global political, economic, and cultural events influence exchange rates, with insights for savvy investors.
Economic factors
There are several key exchange rate factors with a consistent history of shaking financial markets. These factors include inflation, interest rates, trade balances, employment rates, and so on. Since economic factors are shaping markets almost daily, we start with those.
Inflation and interest rates
Inflation and interest rates are closely connected as one can easily affect the other. When inflation rises, central banks step in and raise interest rates to reduce inflation, and when inflation is lower, central banks can lower interest rates to make borrowing money cheaper. As a result, investors closely monitor these two metrics to anticipate changes in interest rates. Higher inflation makes currencies weaker, and whenever banks change the rates, the changes are immediately reflected in global currency rates. In the United States, the Federal Reserve is the central bank that sets interest rates in the country.
Trade balances and economic growth
A country that exports more than it imports has a stronger demand for its currency. More demand equals a stronger currency. However, the Japanese yen was always weaker against the dollar because the BOJ of Japan tends to have super low rates near 0 to support its exporters. Economic growth also increases demand for local currency as more investors try to invest in the country’s economy. Long-term investors often track this data to detect early signs of any changes in currency strength.
Political and geopolitical factors
Elections, sanctions, and overall political stability are also crucial factors. If the country gets under sanctions, its economy crumbles and its currency becomes inflationary, losing its value quickly. Elections are also crucial for a currency’s strength. Geopolitical events can have a serious impact on the currency as well. The most obvious example is the 2016 Brexit events that made GBP lose its value rapidly and violently. Global conflicts, such as wars, can seriously impact global financial assets, especially currency markets. When tensions are high, safe-haven currencies like USD and CHF (Swiss Franc) become very popular among investors as they seek a safe place to protect their capital.
Cultural and social factors
People like tourists, workers, and diaspora communities can shape currencies as well. Tourism usually drives seasonal demand, and countries that are popular destinations during certain seasons experience their currency appreciation as demand spikes. The perception matters as countries seen as safe and opportunity-rich tend to attract more investors, solidifying their currency strength.
Technology and innovation
Technology is seriously affecting everything, especially the financial sector. Digital payment systems, blockchain technology, and fintech startups have made it easy and swift to move money around. Cryptos and stablecoins enable investors to protect their capital using stablecoins during volatile times. The latest trend among banks is to work on CBDCs, which signals a new era where national currencies are blended with technology and blockchain. Despite this, currencies, even in their crypto form, will continue to be influenced by all major factors mentioned above, and knowing how these factors impact your currency is key to keeping your capital safe from risks.
Practical lessons for savvy investors
So, what do all these factors teach us about global currency rates and investing strategies? The key lies in proper preparations and anticipation. Monitoring macro trends, policy announcements, and major geopolitical and political developments is critical.
Diversify
The number one method which is used by professional investors is diversification. This simply means to spread your risks across a basket of assets. By not investing all your capital in one instrument, you can mitigate risks. If one asset experiences a loss, other ones will counter it with returns. Building a diversified portfolio is key to properly diversifying. For example: divide your capital to buy stocks, commodities, currencies, and cryptos so that if one fails to perform, others will counter it. This ensures a stable income without unnecessary losses in the long run.
Hedge
Forex options and ETFs are great hedging assets. Forex options let investors lock in an exchange rate for a future date, which is very useful if you expect volatility but want stability. Currency ETFs, on the other hand, track specific currencies or a basket of currencies and allow easy trading or protection without trading forex directly, but they are still risky.
Monitor the economic calendar
Economic calendar is a free online tool that aggregates important macroeconomic news data such as interest rate decisions, CPI, inflation, employment rates, central bank announcements and speeches, and other crucial information. By monitoring them, investors can always know when important news data will be released, and they can postpone their investment decisions to avoid volatile times and only invest after the main trend is determined.
Features
The Canadian Dollar is on a slow decline. Should you save in euros or US dollars instead?
The Canadian dollar has been losing its value against the dollar this year. For Canadians, this raises a simple question: if your CAD is losing ground, is it better to move savings into euros or U.S. dollars, especially bonds, stocks, or a carry-trade strategy? Carry-trade strategy in this context means to borrow in CAD and invest it in the USA or the EU zone. This is a complex matter, and to understand where the CAD is, how attractive other currencies might be, we need to analyze these currencies more deeply. Below, we will walk you through the data, practical costs, and risks so you can reach a usable conclusion after reading this guide.
Quick snapshot – What the markets say right now
Recently, the Canadian dollar has hit multi-month lows due to weaker oil prices and a post-Fed (U.S. Federal Reserve) market reaction (which raised the rates, making the CAD weaker against the dollar). Canada’s central bank has cut its policy rate to 2.25%, while the Fed’s fund rate remains notably higher at about 3.75-4%. The ECB (European Central Bank) main interest rates are lower than the Fed’s and near the low-to-mid 2% range. While the Euro currency to USD rates remain mostly predictable, due to higher US bond yield rates, the EUR remains stronger, still. The U.S. 10-year Treasuries are around 4.1%, Canada’s 10-year near 3.2%, and Germany’s 10-year around 2.7%, meaning that today the USD-denominated bonds have the highest nominal yield among the three. As a result, the dollar seems much more attractive when it comes to bond yields and stocks.
Bonds – Which currency is the best for fixed income?
The short answer is: USD bonds. When it comes to nominal yield alone, US bonds beat almost all other competitors. U.S. government bond yields (10-year) are noticeably higher than Canadian and German/Eurozone bond yields right now. As a result, US bond buyers have more income potential than Canada and the EU. Euro-area core yields are lower, meaning they are paying less than the USA.
However, nominal yield does not mean it is guaranteed real return, and metrics like inflation, currency rates, and hedging costs can impact potential returns directly. If you buy USD bonds but the dollar falls against the CAD, currency losses will most likely wipe out the higher yield rate. If the Fed lowers its rates, it will make the dollar weaker against the CAD and EUR.
Another challenge is that, if you live and spend in Canada, you are using CAD, and when exchanging it for dollars, you get exposed to foreign currency rate risks, which must not be underestimated.
Stocks – Euro or dollar?
Both the EUR and USD have their advantages. USD has strong liquidity and strong long-term performance, while EUR equities offer valuation opportunities and recent relative strength.
Why USD?
The U.S. market remains the most liquid stock market with strong earnings for many tech and large companies. This makes USD stocks very attractive for long-term-oriented investors. S&P has been rising historically, and even after crashes, it often recovers its value relatively quickly.
Why EUR?
European indexes have performed well this year and in many cases cost less than their U.S. counterparts. While cheaper does not always mean better, these indexes still have some growth potential. Some major banks in the EU zone, together with industries, have recovered strongly with a recent focus on military manufacturing, making many EU stocks very attractive, together with local indexes.
However, here is a caveat: if you are using CAD daily and it loses its value against the euro, the returns from euro holdings might shrink, exposing you to greater currency risks.
Carry-trade analysis – Is it viable to borrow CAD and invest it in USD or EUR?
The basic promise of carry-trade is simple yet powerful: you borrow cheaper currency and invest it in currencies with higher yields. In our case, is it lucrative to borrow in CAD and invest in either EUR or USD? To answer this question, we need to look at numbers. BoC policy rate is 2.25%, Fed funds from 3.75%, U.S 10-yr is 4.1%, Canada 10-yr is 3.2%. If we deduct Canadian rates from the U.S. rates, we get around 1.8% positive before costs. So, in theory, it could be lucrative to invest CAD in USD assets using a carry trade. Since the ECB has around 2%, it is not profitable to use a carry-trade strategy for the euro.
The bottom line
While the CAD has been weakening lately, it is still not cheap enough to naively invest in USD or EUR. However, if you want a pure yield and can tolerate foreign exchange rate risks, USD bonds are more attractive today. When it comes to stocks, USD equities provide stable and liquid markets. If you want valuation potential and diversification, then euro equities have become more attractive this year. When it comes to carry-trade strategies, the USD remains more lucrative than the euro, but on paper, traders and investors should evaluate all the risks and costs before investing in any currency.
In the end, Canadians who have CAD for their daily costs should be careful when trying to get exposure to other markets. US bonds, US stocks, US carry-trade, and EU stocks remain attractive choices for experienced investors.
Features
Why Reading Online Reviews Matters Before Making a Purchase
People usually pause before purchasing to read reviews from other customers. It’s become part of everyday online life, a quick way to see how something really performs before making a decision. According to the Pew Research Center, most internet users read reviews to get a better idea of what they’re buying. The feedback from actual users becomes more reliable than marketing statements because it comes from everyday consumers instead of sales-oriented corporate messages.
Reading reviews also helps spot patterns. If the same comment, good or bad, appears again and again, it usually means there’s truth to it. People now use this collective feedback as their main method to evaluate online products and services for quality and reliability.
When There Are Too Many Options, Reviews Narrow the Field
Shopping online can be overwhelming and a bit of an adventure. There are always more options than anyone needs, hundreds of gadgets, countless household tools, endless entertainment subscriptions. All listings present themselves as excellent value propositions with operational excellence, yet it remains a bit of a challenge when it comes to verifying which ones deliver actual results.
Reviews become useful at this point. Real users provide information about product details, which marketing content fails to show, by sharing their experiences about delivery speed and setup ease and product durability after several months of use. The product details show its operational behavior when used in regular business activities.
Users tend to begin with reviews. For instance, a tech product might have amazing packaging but fall short on battery life or integration. Maybe a new game or casino platform might sound promising, and reviews on trusted choices can confirm whether it includes flexible payment options, a wide content library, and responsive support. When feedback keeps mentioning strong points like clear instructions or helpful customer service, it shows consistency. The product or service delivers its expected results because customers have personally seen its performance.
Reviews Build Faith Through Shared Experience
Reviews gain their strength from the emotional bonds which readers find with each other. Reading about someone else’s experience feels familiar, even if you don’t know them. It’s basic word-of-mouth marketing, like receiving recommendations from a neighbor who has already purchased the item you are considering.
This shared experience has built an informal community of online voices. People rely less on what a brand claims and more on what other users notice. When different reviewers mention similar strengths or small frustrations, it adds authenticity. The story becomes more believable.
Reviews show what other users have experienced, but they do not offer any guidance about what to do. This type of his collective info turns into an important part of how people build trust online. It’s a small thing, but it makes a big difference in how confident we feel about the choices we make.
Balanced Feedback Feels More Honest
A perfect score does not prove that something lacks any imperfections. A combination of positive and less-than-perfect feedback creates a more authentic impression. Small complaints about packaging or delivery delays make glowing reviews sound real. A recent study showed that participants answered honestly instead of trying to make their responses attractive to others.
Most readers know that nothing works flawlessly all the time. People look for reviews which provide both positive and negative aspects because they want to find balanced opinions. Customers can establish realistic purchase expectations through combined information which they can apply before buying. Review systems maintain their value because reviewers maintain honesty in their assessments.
Why Recency and Volume Matter
The best reviews and product ratings are the ones written recently. They reflect how a product or service performs right now, not how it worked a year ago. Things change, materials, delivery services, and even the way companies handle support.
A steady flow of new reviews suggests consistency. When lots of people share their experiences over time, patterns appear. Those patterns tell readers what’s typical, not just what’s possible. It’s the difference between one person’s lucky experience and a reliable average that others can count on.
Quantity matters too. Ten balanced reviews from this month will usually tell more than a single five-star comment from last summer. Together, recency and volume create a clear picture of reliability and quality without relying on assumptions.
Recognising Genuine Reviews
Not every review online is authentic, real, and written by a consumer. Some are written by automated accounts or people hired to post positive comments. Real feedback tends to sound natural and personal. It might mention something specific like the texture of a fabric, how easy the setup was, or whether support staff replied quickly.
Authentic reviews vary in tone and detail. Some are short, others long, some are full of small observations. That mix of styles feels human. On the other hand, copied or fake reviews usually repeat the same phrases or sound overly polished.
Many websites now try to identify and label suspicious posts, but readers can also help by paying attention to repetition, timing, and tone. A quick scan across different platforms usually reveals what’s genuine and what’s not.
Reading Smarter in the Online Marketplace
Reviews have become a solid foundation for how people make decisions online. They give an honest view of how something performs beyond what’s written on the label. Every comment, short or long, adds another piece to the puzzle.
More than that, reviews show how businesses handle problems, how quickly they respond, and whether they follow through on promises. They offer accountability in a world where shoppers and sellers rarely meet face to face.
Reading a handful of reviews won’t guarantee a perfect experience, but it provides helpful context. It shows what’s typical and helps people make choices with more confidence. In an online world full of noise, reviews remain one of the easiest and most reliable ways to learn from others.