Thoughts on the Market

Relativity and Investing

Relativity and Investing

December 3, 2024 - Maddy Bodden

Leonard Susskind, the noted theoretical physicist, famously quoted that Einstein proved that different observers, in different states of motion, see different realities. The markets are constantly in motion. Whether it is earnings, news, rumors, or just normal daily activity, every stock is reacting both to its own forces and in relation to the overall direction of the market. How any of those data points are perceived by the market is dependent on the intentions of the observer.

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The Alignment of the Stars

October 21, 2024 - Maddy Bodden

In the children’s fantasy novel, Peter Pan, these are the directions to Neverland, home of Peter Pan and the Lost Boys. With investing, it is often difficult to know which star to follow as the investment horizon is ever changing, and never totally clear. In recent months, market focus has shifted among inflation, interest rates, corporate earnings, and even politics. All these items can have a profound effect on markets that must be carefully navigated. This month, we will review these points to determine the best investment path forward.

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The Little Things

The Little Things

August 23, 2024 - Maddy Bodden

Details. Details. In the investment world, as long as the market is moving higher, data points that are deemed irrelevant are ignored until they become relevant. On August 5, we saw a large sell off in US equities after a 12% decline in Japan’s Nikkei stock index, all triggered by a rise in the yen after the Bank of Japan increased their interest rate from 0.1% to 0.25%. How does such a little thing as a 0.15% Japanese rate increase send the US market into a tailspin?

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RBC Insights

The U.S. deficit, interest rates, and private sector interplay

The U.S. deficit, interest rates, and private sector interplay

February 07, 2025 |Atul Bhatia, CFA

Economics is rife with self-correcting mechanisms, and we give our thoughts on how that dynamic is likely to play out in the relationship between the U.S. budget deficit and longer-term interest rates.

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Will investors see a pause in rate cuts, or the end?

Will investors see a pause in rate cuts, or the end?

January 31, 2025 |Thomas Garretson, CFA

Global central banks this month have offered something for everyone from further interest rates hikes in Japan to rate cuts in Canada and Europe, while the Federal Reserve remained motionless.

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Pay attention to triggers for Europe

Pay attention to triggers for Europe

January 16, 2025 |Frédérique Carrier

Due to structural headwinds, we downgraded European equities to Underweight in December. Yet a number of catalysts could occur in Q1 that could be well received by equity markets. We peruse the opportunities that may emerge in European equities.

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U.S. equity returns in 2024: Premium performance

U.S. equity returns in 2024: Premium performance

January 10, 2025 |Kelly Bogdanova

We pinpoint five reasons why U.S. equities capped off a banner year in 2024 and why investors were willing to pay for premium valuations. We also offer thoughts on the environment in 2025 and how to approach portfolio positioning.

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Trend & Cycle 2025 Technical Outlook

Trend & Cycle 2025 Technical Outlook

January 08, 2025 |Robert Sluymer, CFA

Studying trends and cycles can provide a more informed view of market dynamics. We look at potential pause points, market breadth, and key interest rate levels to gauge prospects for equity upside in 2025 and how to approach sector positioning.

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Five strategies to maximize your RRSP savings

Five strategies to maximize your RRSP savings

January 01, 2025 |RBC Wealth Management

From contributing at the beginning of the year to setting a savings target, these tips can help you make the most of your RRSPs.

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TFSA versus RRSP versus FHSA: Your top questions answered

TFSA versus RRSP versus FHSA: Your top questions answered

January 01, 2025 |RBC Wealth Management

Learn the main​​ features of each registered investment plan to figure out which one is right for you.

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The Fed approaches a new phase of interest rate policy

The Fed approaches a new phase of interest rate policy

December 19, 2024 |Atul Bhatia, CFA

Markets head lower following a hawkish rate cut by the U.S. Federal Reserve. We discuss the reasons behind the Fed’s shift and if investors really need to fear higher rates caused by stronger growth.

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Fall Economic Statement 2024: Canada boosts investment appeal and the deficit deepens

Fall Economic Statement 2024: Canada boosts investment appeal and the deficit deepens

December 18, 2024 |Rachel Battaglia, Robert Hogue and Cynthia Leach
Given the political uncertainty facing Canada, the fate of many of the measures announced in the 2024 Fall Economic Statement is highly uncertain. However, the fiscal update still serves as a snapshot of where the economy is headed and how upcoming challenges...
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U.S. productivity renaissance

U.S. productivity renaissance

December 12, 2024 |Joseph Wu, CFA

Higher productivity has propelled the U.S. economy ahead of its major peers in recent years, offering a blueprint for other countries and raising the stakes in the global race to harness emergent technologies such as GenAI.

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