RBC Global Insight: August 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. Highlights include:
Global equity: Offense still on the field; defense ready for the call
The market pullback will take time to play out. Planning for an eventual shift to defense beats a “hope for the best” approach.
Global fixed income: What a difference a difference makes
As the formation of global central banks lining up to cut rates has swelled in recent months, with the Fed likely to soon follow, the Bank of Japan broke ranks, and with that perhaps set the recent selloff in motion.
U.S. Recession Scorecard: Four of seven
Our U.S. Recession Scorecard saw an important negative shift in May when a third leading indicator was re-rated to recessionary red. A fourth-the unemployment rate-followed suit in July. With a majority of the Scorecard’s indicators now in the red column the risks of the U.S. economy slipping into recession in the coming months are rising.
Business Owner Presentation Series
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Please join us for this series of virtual presentations where we will discuss the services available through RBC for private wealth management and group saving plans for your employees.
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Canada’s Housing Market Update
Housing market look for deeper rate cuts to ramp up activity
The Bank of Canada’s interest rate cuts in June and July likely marked a turning point for struggling housing markets across the country, but so far the impact has been mixed. After a small uptick between May and June, home resales fell again in some markets including Vancouver, Calgary and Toronto in July, according to early reports from local real estate boards. However, activity picked up slightly in Edmonton and Montreal. It will take deeper rate cuts to meaningfully reduce ownership costs and stimulate homebuyer demand more broadly.
Special Report: Gain Changer
Further exploring recent capital gain tax changes
The federal government’s new capital gains inclusion rates mean that, in certain circumstances, Canadians will now be paying more tax on their gains from capital asset transactions. For many investors, this will be a game – and net gain – changer. Here is a quick overview of the key changes, some scenarios demonstrating how the changes might impact various types of transactions and taxpayers, and strategies to consider to help minimize the impact.
Video: Generative AI
The next frontier of artificial intelligence and innovation
RBC’s AI software analyst enthusiastically talks about how GenAI has leapfrogged traditional AI tools and tells us what excites him about the technology today and its future potential. Topics include:
* The area currently seeing the most transformative impact from GenAI
* The GenAI disruption that’s emerging in services industries
* Today’s hype around GenAI and the long-term potential of the technology
* The three principal challenges GenAI faces
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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.