I am pleased to share the latest investment strategy report from RBC Wealth Management—Global Insight, which provides our current thoughts on asset classes, the economy, and timely issues that impact investment strategy.
This month’s highlights:
Power, storage, and electrification: A revolution
The energy landscape is being transformed by a combination of burgeoning demand, technological innovation, and geopolitical tensions. Against this backdrop, renewable energy has become an integral part of the global economy, and is poised to play an even greater role in the coming decades. We examine key trends that are likely to generate opportunities and risks for investors.
Global equity: “Everything else” takes its revenge
Major equity markets outside the U.S. have fared better than we expected given the aggressive tariff policies of the new U.S. administration. But anticipation of the tariffs has already taken a sizable bite out of Q1 U.S. GDP. Worries that this could be signaling a downshift into slow-growth mode for the world’s largest economy are weighing on markets. A selective, cautious approach to equities is called for.
Global fixed income: Proceed with caution
While the hope is always for more clarity, it’s rarely realized. Though some may come on the tariff front in upcoming months, the biggest risks around tariffs and trade wars—higher inflation and lower growth—could eventually pose a problem for central banks.
U.S. Recession Scorecard: Waiting for clarity
As 2025 proceeds, the Scorecard’s leading indicators remain undecided on balance and unchanged from last month. We believe a mixed Scorecard, with the preponderance sitting in less-positive columns, argues for investors to stick to a watchful, cautious approach.
If you have any questions or need further guidance, please do not hesitate to contact me.
I appreciate the opportunity to serve you and look forward to continuing to help you accomplish your long-term financial goals.
Beth Arseneau, FMA, CIM
Portfolio Manager
416-960-4592
beth.arseneau@rbc.com
