What a year it has been! In many ways it feels like we have just started 2021 rather than wrapping it up. Throughout the year, we continued to pivot while aspects of our day to day lives were altered. With all of the changes that we have navigated together, we are looking forward to the New Year.
In appreciation of our clients and to recognize all of the hard work our essential workers have done this year, we have made a donation to St. Joseph’s Healthcare. RBC has been a long-time partner and supporter of St. Joseph’s Healthcare Hamilton. SJHH is committed to making a difference in people’s lives and creating a lasting future for our community through integrated health services. In addition, SJHH has a national reputation for outstanding patient care and innovative medical and surgical treatments. To learn more about ongoing initiatives and projects, please visit their website.
The Hayes Vickers team and RBC Dominion securities recently ran a campaign together collecting warm clothes for Wesley Urban Ministries. We were able to collect many lightly used winter clothing pieces for children and adults in need. Over the past few weeks, we have been fortunate to take these articles to those who need it most.
Team News
We had our annual Hayes Vickers Private Wealth Team Holiday party this past Tuesday night. Although we maintained social distance and wore masks it was exciting to finally be able to celebrate the holiday season together.
Each year, RBC’s Top Performers are recognized with an invitation to attend the annual RBC Performance Conference hosted by senior executives. The RBC Performance Conference represents the pinnacle of recognition at RBC. These award recipients are team players, leaders, mentors, and role models among their colleagues and within their communities. Our very own Natalia Bastasic won the award this year. We want to congratulate Natalia on her ongoing dedication and ongoing leadership of the team. Congrats Natalia!
Market Update - 2022 Outlook
Our underlying view for 2022 is that it will be a year marked by some moderation in trends. The Canadian and Global economies should deliver above-trend growth once again in 2022, albeit at a less robust and possibly bumpier pace than in 2021 due to lingering inflation, supply chain, and labor market pressures.We think that the trajectory of the world’s major economies will be shaped by the normal progression of the business cycle and the remaining effects of the policies put in place to contend with the pandemic. This phase should be good for equities for as long as U.S. and global recessions can be avoided. Rising levels of vaccinations and natural immunity, combined with less morbidity from variants that are likely to remain in circulation, should gradually lead to a more normal environment. RBC Wealth Management has released the Global Insight - 2022 Outlook this report highlights our outlook for equities and fixed income as well as key themes for the year ahead.
Looking back at 2021, many major economies saw growth near the mid-single digits which is meaningfully higher than the low single digits seen prior to the pandemic. Meanwhile, earnings growth from companies around the world was abnormally high. Much of the strength was the result of the rebound following last year’s declines and a reversion back to more normal levels only makes sense. Having said that, growth next year still has the potential to be above average. Economies have yet to fully reopen in a synchronized way, production has been limited due to supply chain issues, inventories remain historically low and need to be rebuilt, and households have high savings and may be eager to spend. All this suggests that growth will look more normal, but has the potential to remain robust. Please see RBC's GDP growth forecasts below:
Rising inflation has been top of mind for investors the last few months. In some countries, it sits at levels not seen in decades. Inflation is calculated as a year over year price change figure, and the 2021 readings have compared prices to the year ago period, when the effects of the pandemic were most severe. As we move through 2022, price levels will be compared to levels from this past year, and thus inflation readings over time should recede to some extent (see chart below). Furthermore, some of the supply chain pressures that have plagued many industries may ease given the efforts that are underway. Meanwhile, the exceptional demand for goods should eventually shift back towards services as conditions normalize and the hospitality industry experiences a long awaited revival. Overall, these factors should lead to some moderation of inflation in pockets of the economy.
Financial Health
Online shopping can be a convenient method to save time to gather necessities during busy times, there are a number of things to consider to help keep your money and information safe. With the increase of food delivery services and free shipping incentives offered by many retailers now, consumers are now turning to online shopping more than ever. This article outlines ways to reduce risks when online shopping. Or if you think you are fairly Cyber Savvy, RBC has put together a quick quiz for you to find out how savvy you are!
The pandemic has forced many to think about their health and wealth. Harmony across families can be maintained by having a multi-generational dialogue. Leanne Kaufman the CEO of RBC Royal Trust suggests that often times, you might want to consider naming a corporate executor to manage your estate in a bid to avoid burdening loved ones. Especially if there is a potential for argument. Leanne suggests “If you are going to name a loved one, let them know that they can get help and they have your permission to do it.” If you have any questions about a Corporate Executor, please reach out to us. We understand that each situation is unique.
2021 year-end tax planning is on our minds, this article takes a look at a summary of some common yearend tax planning strategies. If you would like to discuss your tax plans, please email us to arrange a meeting.
As the year winds down to a close, we would like to wish you and your loved ones a safe and happy holiday season. We look forward to returning in 2022, and plan to continue sharing our thoughts and perspectives in what should be another interesting year for investors. We would like share our gratitude to our clients for their confidence and trust throughout the year. We also want to thank our team for their continuous efforts ensuring the best for our clients.
We are excited and looking forward to sharing 2022 with you.
Best wishes for a joyous Holiday Season,
Hayes Vickers Private Wealth