RBC Global Insight Monthly - February 2024
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 include:
The death of (traditional) value
We argue that throughout most of this century value as an investment factor hasn’t worked in the same way as in the past, and that incorporating non-traditional, extra-financial factors into portfolio strategy can enhance potential upside.
Growth stocks regained investors' love in 2023
After growth stocks brought heartbreak in 2022, the growth style of investing, utilizing the Russell 1000 Growth Index as the proxy to start the conversation, was at the top of the leaderboard in 2023, advancing approximately 41 percent. Can the rebound continue?
Global equity: New highs, more risk
The stock market, or at least the S&P 500, after a two-year wait has climbed into new high ground. We think more new highs are ahead along with more volatility.
Global fixed income: Timing isn't everything
Volatility in global fixed income markets remains elevated as traders attempt to divine what central banks have in store this year. Rather than focusing on the timing of potential interest rate cuts, we think investors should consider how far rates could ultimately fall.
Webinar: Market Update & Outlook 2024
When: Tuesday, February 27th 12:00pm – 12:30pm
Where: Hosted Via Cisco Webex
Has inflation Peaked? Will Interest Rates come down? Are we going into a recession and how will my investments be impacted? Is my portfolio still on track for retirement?
Please join us for this concise and informative webinar where we will discuss all of these items and more. Joined by Dominick Hardy - Senior Portfolio Manager for Canadian Equities, we will explore what has shaped the investment landscape over the past 1-2 years, and what to expect moving forward in 2024 / 2025. We will also discuss how to position your portfolio appropriately for the current market environment and ensure you are still on track to meet your retirement goals. Learn more here.
RSVP Required: A confirmation email with link to the event will be provided upon registration.
2024 TFSA Information & 2023 RRSP Deadline
2024 TFSA Contribution Information
You can now make your annual Tax-Free Savings Account (TFSA) contribution for 2024 (up to $7,000). If you haven’t maximized your TFSA contributions in the past, you can also catch up on your 2009-2023 contributions. The maximum possible contribution room for all years (including 2024) is $95,000 (assuming you were at least age 18 in 2009).
2023 RRSP Contribution Deadline
The RRSP contribution deadline for the 2023 tax year is February 29, 2024. Your contribution limit for 2023 is 18% of your 2022 earned income, to a maximum of $30,780, with certain adjustments (e.g. less any Pension Adjustment appearing on your T4 tax slip and plus any unused contribution room carried forward from previous years). Please check your latest NOA or refer to the MyCRA website to confirm your exact contribution limit.
For additional information and contribution options, please click the link below.
Canada's Housing Market Outlook
A tale of two halves in 2024
Interest rates will continue to dictate the outcome of Canada’s housing market in 2024 with the first and second halves showing different pictures. We expect slow activity and softer prices to persist in the early part of the year as the Bank of Canada maintains its policy rate at a two-decade high and home ownership stays out of reach for many potential buyers. But, a pivot toward rate cuts mid-year will get the wheels turning faster over the second half or perhaps even sooner.
Client Profile - Meet the Smiths, Retiring Abroa
A journey to retiring abroad in Spain
Many of our clients find their way to our practice as they approach retirement and begin to explore the countless opportunities for the next chapter of their lives. A handful of these clients decide to pack up their bags and retire overseas. Enter the Smiths – one of our first clients to take this path, they were able to retire relatively young, sell their home in North Vancouver and settle down to start a new life in a beautiful community on the coast of Spain.
They have graciously agreed to share their story for the many people out there who may be dreaming of one day doing the same.
Complimentary Second Opinion Service
Helping your family build, manage and protect your wealth
If you’re a successful entrepreneur, part of a large family, or a high net-worth retiree / pre-retiree, you may have to manage financial issues that others don’t; This could include inheritances, assets in trust, complex tax planning, or a family vacation property. Perhaps you’d like to put your finances into greater context with your family’s savings, estate and business planning goals. Whatever your personal situation, we are here to help, with a comprehensive review that can ensure your wealth remains “all in the family.”
Our review process typically looks at both your investment portfolio and your overall wealth planning. This way, we can assess your financial situation in the context of your personal tax situation, savings goals, the time you have to invest and other factors such as your insurance coverage or charitable intentions.
This information is not investment advice and should be used only in conjunction with a discussion with your RBC Dominion Securities Inc. Investment Advisor. This will ensure that your own circumstances have been considered properly and that action is taken on the latest available information. The information contained herein has been obtained from sources believed to be reliable at the time obtained but neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers can guarantee its accuracy or completeness. This report is not and under no circumstances is to be construed as an offer to sell or the solicitation of an offer to buy any securities. This report is furnished on the basis and understanding that neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers is to be under any responsibility or liability whatsoever in respect thereof. The inventories of RBC Dominion Securities Inc. may from time to time include securities mentioned herein. RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. RBC Dominion Securities Inc. is a member company of RBC Wealth Management, a business segment of Royal Bank of Canada. ®Registered trademarks of Royal Bank of Canada. Used under licence. © 2022 RBC Dominion Securities Inc. All rights reserved.