When we scan the global markets right now, one theme keeps standing out: money is getting cheaper almost everywhere.

Central banks from Europe to Asia are trimming rates, and traders expect the U.S. Fed to follow suit in September.

In Canada, the BoC is pausing for now, but even Governor Macklem has hinted he’s ready to cut again if needed. Lower borrowing costs may sound like a dry policy detail, but they ripple into every corner of the market. One sector in particular could benefit from this structural shift. We have more on that below, but first, a few quick housekeeping items:

— William D.

In 2010, a Grammy-winning artist passed on investing $200K in an emerging real estate disruptor. That stake could be worth $100+ million today. 

One year later, another real estate disruptor, Zillow, went public. This time, everyday investors had regrets, missing pre-IPO gains. 

Now, a new real estate innovator, Pacaso – founded by a former Zillow exec – is disrupting a $1.3T market. And unlike the others, you can invest in Pacaso as a private company.

Pacaso’s co-ownership model has generated $1B+ in luxury home sales and service fees, earned $110M+ in gross profits to date, and received backing from Maveron, Greycroft, and more. They even reserved the Nasdaq ticker PCSO.

And you can join them for just $2.90/share. Just don’t wait. Pacaso’s opportunity officially ends September 18.

Canadian salary increases projected to slow to 3.1% in 2026 as employers tighten budgets (Yahoo!Finance)

Canada’s youth face bleak employment market as economy slows (Financial Times, Subscription Required)

Carney pushes for 'Buy Canadian' policy and pauses EV targets for 2026 (BBC)

China delays final ruling in canola dispute with top supplier Canada (Reuters)

A Canadian Whisky Brand May Move Bottling to the U.S. A Union Blames Trump. (New York Times, Subscription Required)

Carney Unveils Billions in Aid for Canada’s Tariff-Hit Firms (Bloomberg)

The Bank of Canada is holding interest rates steady at 2.75% for now, but Governor Tiff Macklem left the door open to a third rate cut this year, calling the BoC “ready to respond to new information.”

Globally, the trend toward lower rates is much clearer. Traders have priced in an overwhelming likelihood that the U.S. Federal Reserve will lower rates by 25 basis points in its September 17 meeting.

Last month, the Bank of England cut rates to 4%, their lowest level in two years. The European Central Bank cut rates to 2% in June, and the People’s Bank of China cut its key interest rate to 1.4% in May. In July, the Swiss National Bank cut rates to zero, and India’s central bank cut rates by 50 basis points in June.

This near-universal global trend towards cheaper money could stimulate economic activity by lowering borrowing costs.

Agnico Eagle Mines $AEM is based in Toronto, Canada, but it has an excellent portfolio of gold-producing assets spanning the world.

The $74.2 billion company operates gold, silver, zinc, and copper-producing mines in Canada, Australia, Finland, and Mexico, with developmental activities being conducted in Canada, Europe, Latin America, and the U.S.

Formerly Agnico Mines, the company acquired Eagle Gold in 1972, taking both names as it charted out a path to success. In 1998, Sean Boyd became CEO and took Agnico Eagle from a single gold-mining operation to a precious metals powerhouse with international operations.

In August, the company delivered a triumphant earnings report, announcing record free cash flow of $1.3 billion and CA$100 million in share buybacks. The company also returned $200 million to shareholders in the form of dividends in Q2.

These results could largely be attributed to the enormous headwind of gold prices, which rose by $400 per ounce last quarter. But Agnico Eagle has taken important steps to make the most of the boom. It has kept costs to a modest $30 per ounce increase in the same time frame, meaning the gold boom has outstripped their growth in expenses by more than 13-to-1.

The company produced 866,000 ounces of gold in Q2, at a total cash cost of $933 per ounce. With gold prices pushing past $3,500 per ounce, it’s not surprising that Agnico Eagle’s operating margins have hit a formidable 58.58%. The company also has $1.57 billion in cash on hand, compared to $733 million in debt.

Despite strong fundamentals and record free cash flow, management has kept the dividend at $1.60/share for 13 straight quarters. This amounts to a yield of 1.11%, which is slightly below the S&P 500 average. In its August earnings call, management implied it has no imminent plans to raise the dividend, as they prefer to invest cash in new operations amid the ongoing gold boom.

The company also has a record of surprising analysts on the upside. In the last four quarters, it has beaten earnings estimates by 11.54%, 7.57%, 10.72%, and 9.87%.

Despite having risen by 84% year-to-date, AEM shares are still attractively priced, with a forward price-to-earnings ratio of 24.5. This is below the average S&P 500 company, which trades at 29.96x earnings.

A caveat to note on AEM’s $1.3 billion record cash flow is that $500 million of it comes from a one-off $500,000,000 in tax deferrals. Excluding that, cash flow still came in above the $594 million achieved in Q1.

In Q4/2024, a technical evaluation of the company’s Upper Beaver gold-copper project located in Ontario showed that the site had much more gold and copper than previously thought.

The site has estimated mineral reserves of 2.8 million gold ounces and 54,930 tons of copper. The project could produce approximately 210,000 ounces of gold per year and 3,600 tons of copper annually over a 13-year mine life. At today’s gold prices, that could yield additional revenue of more than $745 million. And that’s before taking into account that copper prices hit a record high last month, nearing $10,000 per ton.

But the company has an even bigger iron in the fire. Its 80-km-long Hope Bay greenstone belt has three gold deposits, which are expected to yield 400,000 ounces of gold per year between them. With key permits and approvals to construct and mine the deposits already in place, the company is actively exploring the Hope Bay property.

All told, these assets represent about 1.3-1.5 million potential new ounces in annual production. Management has not given estimates of when these mining sites may begin production. However, they are in regions where the company has been operating for decades, in most cases with infrastructure that is already in place. In the years ahead, these mines coming into operation could be a powerful catalyst for Agnico Eagle.

Institutional investors back startups to unlock outsized returns. Meanwhile, regular investors have to wait. But not anymore. Thanks to regulatory updates, some companies are doing things differently.

Take Revolut. In 2016, 433 regular people invested an average of $2,730. Today? That’s worth $1+ million, up 89,900%. No wonder thousands are taking the chance on Pacaso. 

Founded by a former Zillow exec, Pacaso’s co-ownership tech reshapes the $1.3T vacation home market. They’ve earned $110M+ in gross profit to date, including 41% YoY growth in 2024 alone. They even reserved the Nasdaq ticker PCSO.

The same institutional investors behind Uber, Venmo, and eBay also backed Pacaso. 

And you can join them as an early-stage investor for just $2.90/share. 

Just don’t wait. Pacaso’s opportunity officially ends September 18.