Global Insight Monthly - November 2023
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.
Are equity markets entering the AI era?
Two contrasting dynamics have shaped equity markets in 2023: while a handful of tech-linked behemoths have accounted for the lion’s share of gains, the rest of the market has followed a more tepid trajectory. A key driver of this trend has been the emergence of generative artificial intelligence. But despite the stock market’s AI enthusiasm, potentially transformative technologies often bring investors more questions than answers.
Global equity: Two sides of the same coin
Surging bond yields have brought good news to investors overall on a couple of fronts. But they’ve also come with negative effects for equity investors. Our assessment of these dueling narratives leaves us retaining our Market Weight positioning in equities within a global portfolio.
U.S. Recession Scorecard:
Different month, same status. With some data still to come, there have been no sufficient changes this past month necessitating adjustments to the positioning of our seven U.S. recession indicators on the Scorecard.
Advice Event: Artificial Intelligence (Replay)
Understanding the basics, practical usage & investment implications
The replay is now available for our recent virtual presentation on Artificial Intelligence.
Joined by special guest Dr. Sarah Johnson. We discussed the basics of Artificial Intelligence (101), the practical applications of this technology, and the longer-term investment implications and opportunities.
Additional Resources on Artificial Intelligence:
- Will AI generate long-term equity performance?: Enthusiasm for generative artificial intelligence (AI) has helped drive 2023’s stock market gains. We look at the implications for investors.
- RBC Capital Markets – AI Resources & Insights
Interest Rates
Has the era of zero and negative interest rates ended?
After a decade of investors navigating through zero and even negative-interest-rate policy regimes, what might the next five, 10, and 15 years look like for central bank policy, and more importantly, have we actually left the era of low interest rates behind?
Special Housing Report
Fall market stuck in a low gear across Canada
High interest rates are exerting a growing toll on Canada’s housing markets. Early results from local real estate boards for October showed the broad softening of transaction activity continuing - as demand cooled in the face of elevated ownership costs. The strong influx of sellers seen in previous months paused in several markets (including Toronto, Vancouver and the Fraser Valley) but the trend still generally points upwards. Growing inventories-except in the Prairies-provide further evidence that the few buyers out there have more options to choose from.
Year-end Tax Planning Strategies
Don’t let April be the cruelest Month: Seven year-end tax planning strategies
Poet T.S. Eliot wrote in 1921 that “April is the cruelest month”, suggesting that it brings with it the pain of rebirth and renewal, while also reminding people of their past failures and losses.* Canadians might say that April is the cruelest month for another reason: it’s tax time. And, for some of us, it can bring regret for not taking the steps we could have taken to minimize our tax bills when we had a chance.
Fortunately, there some things you can do before year’s end to manage and reduce your tax bill this coming April.
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